Los Angles-based Platinum Equity LLC is making headlines in the not-so-friendly tech environment with its acquisitions of Amisys 3000 and Pathways Managed Care product groups from the Information Technology Business of Mckesson HBOC, Inc. for an undisclosed amount.
Amisys 3000 services information management needs of payor-based organizations that have assumed financial risk for the delivery of health-care services. Pathways Managed Care is a provider of information management targeting provider-based managed care organizations. Platinum Equity will combine the two entities to form Amisys LLC.
“This is just a powerful combination of products, services, employees, customers and all of the good stuff that makes a business valuable,” said Alanna Chaffin, a vice president at Platinum Equity.
Platinum already owns Synertech Health System Solutions LLC, an application services provider and an administrative outsourcer to the health-care industry. With the addition of Amisys LLC, Platinum will gain position and offering in the managed care technology and outsourcing market. “Our plan is to leverage the strengths of both Synertech and Amisys to provide complementary solutions to health plans,” said Tom Gores, Platinum’s president and CEO.
However, what makes this deal interesting aside from the synergies realized is the time, or lack of time, in which the transaction was closed. Platinum was able to close the acquisition in less than 45 days following the definitive agreement announcement. Chaffin attributed this to the firm’s focus on acquiring “strategic additions” to its portfolio that can “either add value” to its current portfolio or “possess inherent strong value propositions on their own.”
“This is traditionally a very quiet time, and we are as busy as we’ve ever been,” Chaffin said. “We’re anticipating a very good last half of the year.”
Some of Platinum’s recent acquisitions include: Claricom, a nationwide advanced integrator of communications services; Nextira, a vendor-independent provider of voice, data and convergence services in the consultation, design, provisioning, deployment, management and support of mission critical networks; and Gupta Technologies, an e-business products and services company providing Internet development and database tool applications.
Also recently, Platinum signed a definitive agreement to acquire the Multiservice Networks Division of Motorola Inc. Terms of the transaction were undisclosed.
“The MND managed network solutions are a strong addition to our portfolio,” Gores said. “We are continuing to build our presence in the network space and see the employees and customers of MND as important components in our continuing drive to create new value.”
Founded in 1995, Platinum Equity finances its deals through an “internal-based capital and working revenue” as well as from cash flow from its 20-plus operating companies. “What makes us unique is that our acquisitions are never contingent upon us getting financing after the offer has already been made,” Chaffin said.
She also added that the firm has no immediate plans of raising a third-party fund, but that is not to say that it won’t consider that option down the road.