Date Dec 10, 2018
Source TA

TA Associates to Invest in Netsmart Technologies

BOSTON and OVERLAND PARK, KS – TA Associates, a leading global growth private equity firm, today announced that it has signed a definitive agreement to invest, alongside GI Partners, in Netsmart Technologies, Inc. (“Netsmart” or “the Company”).

Netsmart is a leading healthcare software company delivering management process solutions and electronic medical records to the health and human services (HHS) and post-acute end markets. TA Associates and GI Partners, a current shareholder in Netsmart, will acquire the stake in Netsmart held by Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX). The transaction is expected to close in the fourth quarter of 2018 and is subject to customary closing conditions. Financial terms of the transaction were not disclosed.

Founded in 1968, Netsmart provides software and services to the HHS and post-acute markets. The Company’s products, comprised primarily of electronic health records (EHRs) and related offerings, address the clinical, financial and administrative needs of its clients. The Netsmart suite includes care coordination, connectivity and integration, analytics, benchmarking, consumer engagement, mobility and telehealth offerings, among others. The largest provider of its kind in the United States, Netsmart serves more than 600,000 users from over 25,000 organizations across the country within four core areas: behavioral health, social services, care at home and senior living. The Company is headquartered in Overland Park, Kansas, with additional offices in Arkansas, California, Illinois, Missouri, New York, North Carolina and Ohio.

“We are excited to partner with the leading healthcare technology provider serving these growing and important end markets,” said Mark H. Carter, a Managing Director at TA Associates who will join the Netsmart board of directors. “Netsmart’s compelling attributes include a high-quality business model, a large and diversified customer base and software solutions that we believe are mission critical. We welcome the opportunity to work with Netsmart CEO Mike Valentine, whom we have known for many years, and with the investment professionals at GI Partners.”

“Since our founding, Netsmart has sought partners who share our commitment to excellence and quality healthcare outcomes,” said Mike Valentine, CEO of Netsmart. “TA Associates brings decades of experience investing in the healthcare industry and supporting efficiency, quality care and cost containment. Along with the team at GI, I am delighted to welcome TA as an investor and look forward to a close collaboration in continuing the evolution of Netsmart.”

Netsmart estimates the addressable market for HHS, home health, and long-term care software and technology solutions at $25 billion annually. According to the Company, the U.S. market for its core product offering is approximately $14.5 billion, with behavioral health comprising nearly half of that figure.

“Increasingly complex clinical, billing and regulatory requirements, and the need to measure and report patient outcomes, are accelerating the adoption of Netsmart’s software solutions,” said Hythem T. El-Nazer, a Managing Director at TA Associates who also will join the Netsmart board of directors. “In addition, as the HHS and post-acute industries continue to consolidate and expand, the need for technology solutions to coordinate care and drive efficiency will grow. As the leader addressing the unique and complex billing needs of customers spanning the continuum of care, we believe that Netsmart is very well positioned for continued growth.”

Kirkland & Ellis is providing legal counsel and Deloitte is serving as financial advisor to TA Associates.

About Netsmart
Netsmart designs, builds and delivers electronic health records (EHRs), solutions and services that are powerful, intuitive and easy-to-use. The Company’s platform provides accurate, up-to-date information that is easily accessible to care team members in behavioral health, care at home, senior living and social services. Netsmart makes the complex simple and personalized so clients can concentrate on what they do best: provide services and treatment that support whole-person care. By leveraging the powerful Netsmart network, care providers can seamlessly and securely integrate information across communities, collaborate on the most effective treatments and improve outcomes for those in their care. The Company’s streamlined systems and personalized workflows put relevant information at the fingertips of users when and where they need it. To learn more about how Netsmart is changing the face of healthcare today, please visit

About TA Associates
Now in its 50th year, TA Associates is one of the largest and most experienced global growth private equity firms. Focused on five target industries – technology, healthcare, financial services, consumer and business services – TA invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in growth companies. TA has raised $24 billion in capital since its founding in 1968 and is committing to new investments at the pace of $1.5 to $2 billion per year. The firm’s more than 85 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA Associates can be found at