TA Announces Strategic Growth Investment in Alpha II
Investment Supports Alpha II’s Expansion of Revenue Cycle Management Software Solutions
BOSTON, MA and TALLAHASSEE, FL– TA Associates (“TA”), a leading global private equity firm, today announced that it has signed a definitive agreement to make a significant growth investment in Alpha II (“the Company”), a leading provider of revenue cycle management (“RCM”) technology solutions to healthcare providers across the care continuum. As part of the transaction, existing shareholder WestView Capital Partners will reinvest alongside TA to maintain a minority position in the Company.
Founded in 1983, Alpha II has grown into a leading provider of end-to-end RCM technology solutions. At the core of Alpha II’s offerings is a proprietary rules engine that helps providers proactively identify coding errors to ensure appropriate reimbursement, minimize denials and increase staff productivity. The Company’s proprietary claim edits fuel an industry leading clean-claims rate for Alpha II’s customers. Through a fully software-based platform, Alpha II has expanded its revenue cycle workflow solutions into insurance verification, denials prevention and merit-based incentive payment system (MIPS) reporting.
“We are excited to welcome TA on Alpha II’s continued journey to revolutionize the revenue cycle technology ecosystem,” said Todd Doze, CEO of Alpha II. “The foundation of our partnership is a shared desire to create the leading RCM software platform. With deep experience investing in and scaling mission-critical healthcare technology companies, we believe TA will be a valuable partner as we further expand our solution suite and accelerate our growth trajectory.”
Today, the Company’s technology integrates with electronic medical record, practice management, RCM and clearinghouse partners to support revenue cycle workflows for more than 100,000 clinicians. TA’s investment will support Alpha II’s continued development of mission-critical technology to serve healthcare providers, further solidifying the Company’s position as a market leader.
“We have followed Alpha II for many years and have been impressed by the Company’s commitment to developing innovative solutions that evolve with the needs of providers,” said Mark Carter, Managing Director and Co-Head of the North America Healthcare Group at TA. “As medical coding complexity grows and providers demand increasingly advanced solutions, we aim to support the expansion of Alpha II’s product suite via organic and acquisition-driven growth, while continuing to deliver ROI for our customers. We are thrilled to partner with Todd, the Alpha II team and WestView on the journey ahead.”
As part of TA’s investment, Mark Carter, Ethan Liebermann and Eric Zagorski will join the Board of Directors. The transaction is expected to close in June of 2023.
Kirkland & Ellis provided legal counsel to TA. William Blair served as exclusive financial advisor and Latham & Watkins served as legal advisor for Alpha II and WestView. Financial terms of the transaction were not disclosed.
TA Associates (“TA”) is a leading global private equity firm focused on scaling growth in profitable companies. Since 1968, TA has invested in more than 560 companies across its five target industries – technology, healthcare, financial services, consumer and business services. Leveraging its deep industry expertise and strategic resources, TA collaborates with management teams worldwide to help high-quality companies deliver lasting value. The firm has raised $48.6 billion in capital to date and has more than 150 investment professionals across offices in Boston, Menlo Park, Austin, London, Mumbai and Hong Kong. For more information, visit www.ta.com.
About Alpha II
For decades, Alpha II’s software-as-a-service products have supported medical coding, compliance, revenue analysis and claims editing for healthcare providers. Built up over 40+ years and continuously updated in real-time, Alpha II’s proprietary rules engine is used across a wide range of provider specialties and payer types, producing the industry's most comprehensive coding and billing content database. The Company’s products integrate with electronic health record, practice management, revenue cycle management, and provider information systems. Alpha II’s suite of solutions across claims editing, coding, insurance verification, denials prevention, and MIPS reporting support the revenue cycle workflows of providers across the country. For additional information, please visit www.alphaii.com.