FFL Partners Completes Strategic Investment in Medicus IT, the Leading Healthcare-Focused IT Managed Service Provider
July 10 2024 - 9:00AM
Business Wire
Partnership Positions Fast-Growing
Healthcare IT Managed Services Provider to Pursue Next Phase of
Growth
FFL Partners (“FFL”), a private equity firm focused on growth
investments in Healthcare and Tech-Enabled Services businesses,
today announced that it has completed an investment in Medicus IT
(“Medicus” or “the Company”), the leading healthcare-focused IT
managed services provider. Financial terms of the transaction were
not disclosed.
Headquartered in Alpharetta, GA, Medicus provides
HIPAA-compliant, best-in-class managed IT and cybersecurity
services to more than 6,500 healthcare providers with more than
50,000 end users. The Company has approximately 300 employees
serving outpatient provider and community health center clients
across 30+ states and 2,000+ locations.
“As a growing private equity firm that solely specializes in
Healthcare and Tech-Enabled Services investments, we couldn’t be
more excited to partner with Medicus IT,” said Jonathon Bunt,
Partner at FFL Partners. “Medicus IT understands the opportunities
and challenges that come with running a healthcare practice. The
Company’s differentiated managed IT, compliance, and cybersecurity
offerings allow healthcare providers to deliver positive patient
outcomes at scale across any EMR/EHR system those practices choose
to use.”
“We are thrilled to partner with FFL during a time when
healthcare organizations face significant IT challenges,” said
Chris Jann, Founder and CEO of Medicus IT. “This partnership will
accelerate our expansion and enhance our mCare services platform,
leveraging FFL’s expertise to drive growth and innovation. Most
importantly, FFL’s investment will enable us to serve more
healthcare providers, allowing them to focus on what matters most –
their patients.”
Medicus launched its next-generation, comprehensive managed
service offering known as mCare in 2022 to serve the IT,
cybersecurity and compliance needs of ambulatory outpatient care
and community health centers. The Healthcare IT market is expected
to grow at 15.8% annually from 2024 to 2030 according to Grand View
Research. Advances in healthcare technology, the move to the cloud
and increasing cybersecurity and compliance concerns are driving
healthcare providers to uplevel their IT operations.
“This transaction reflects our continued ability to generate
attractive investment opportunities from our Sector Exploration and
Expertise Development (“SEED”) process and represents our second
investment in the vertical IT Managed Services Provider space and
fifth IT Services investment in the last five years," said Cas
Schneller, Managing Partner at FFL Partners. “We believe Medicus is
well positioned to grow both organically and inorganically as the
Company continues to expand its service offerings and geographical
footprint for existing and new clients.”
Kirkland & Ellis, LLP served as legal counsel to FFL. Baird
served as the exclusive financial adviser and Whiteman Osterman
& Hanna LLP as legal counsel to Medicus IT. Medicus IT was
previously backed by 424 Capital.
About FFL Partners FFL Partners is a leading
middle-market private equity firm that has been investing in
high-quality companies since 1997. Based in San Francisco, FFL is a
hyperspecialized, thematic investor focused on targeted areas
within Healthcare and Tech-Enabled Services, two complementary
sectors in which the firm has deep expertise and broad networks.
FFL employs a proprietary sourcing and value creation strategy
called the Sector Exploration and Expertise Development (“SEED”)
process. The firm aims to partner with exceptional management teams
and employs a high-engagement approach to accelerate growth at its
businesses. FFL currently has over $6 billion of cumulative capital
commitments. For additional information, please visit
www.fflpartners.com
About Medicus Medicus IT is committed to helping
healthcare organizations leverage technology to optimize patient
care and deliver better patient outcomes. Moving beyond traditional
IT, Medicus helps its healthcare clients run their IT
infrastructure, grow their operations, and transform their
organizations. Headquartered in Atlanta, Georgia, with service
centers in New Jersey, Ohio, Florida, Arizona, North Carolina,
Medicus is one of the nation’s top Healthcare Solutions Providers
(HSP), serving more than 6,500+ providers, with over 50,000+ users
in over 2,000+ locations. Together, we drive healthcare forward™.
For more information, please visit: https://medicusit.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240709023109/en/
For FFL Partners: Kelly Holman Stanton 646-502-3509
KHolman@Stantonprm.com