GI Partners and TA Associates to Acquire Allscripts’ stake in Netsmart Technologies

December 14, 2018

GI Partners (“GI”), a leading private equity firm, together with TA Associates (“TA”) announced today that it has signed a definitive agreement to acquire the stake held in Netsmart Technologies, Inc. (“Netsmart”) by Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX). This transaction represents an additional investment for GI Partners over its initial stake acquired in April 2016, and results in majority ownership of Netsmart by GI Partners. This transaction will further build out Netsmart as the leading provider of human services and post-acute technology in healthcare.

Founded in 1968, Netsmart is the leading provider of software and technology solutions designed especially for the health and human services and post-acute sectors, enabling mission-critical clinical and business processes including electronic health records, population health, billing, analytics and health information exchange. Since GI Partners’ investment in 2016, Netsmart has experienced considerable growth through product innovation and multiple strategic acquisitions. During this time, Netsmart launched myUnity, the only multi-tenant SaaS platform serving the entire post-acute care continuum, and successfully completed strategic acquisitions in human services and post-acute care technology. Over the same period, Netsmart has added 150,000 users and over 5,000 organizations to its platform.

Dave Kreter, Managing Director of GI Partners, said, “We thank Allscripts for their partnership and look forward to the next chapter of growth with our new partners, TA Associates. We are excited to support management as they continue down the path of making Netsmart the largest HCIT provider outside of the hospital walls.”

Howard Park, Managing Director of GI Partners, said, “We continue to strongly believe Netsmart represents an attractive business that aligns with our focus on healthcare, IT infrastructure, and software. We are excited to work with the company and TA to focus on the next phase of growth for the business.” 

Mike Valentine, Chief Executive Officer of Netsmart, who will continue in that capacity, said, “The GI and TA teams have substantial relevant investing and operating experience in the end-markets and industries in which Netsmart serves. We look forward to our continued partnership with GI and new relationship with TA for the next chapter of growth.”

The transaction is subject to customary closing conditions and is expected to be completed in December 2018. 

J.P. Morgan Securities LLC and Evercore acted as financial advisors to Allscripts and Sidley Austin provided legal counsel. Paul Hastings provided legal counsel to GI Partners. Kirkland & Ellis provided legal counsel to TA Associates.



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