Major investment firm Coalesce Capital purchases prominent healthcare IT and business solutions company DAS Health.
In a significant move for the healthcare IT sector, Coalesce Capital, a private equity firm with over $1.4 billion of regulatory assets under management, has acquired a majority stake in DAS Health Ventures. The Tampa-based company, founded in 2003, is a leading provider of healthcare IT and business solutions, offering services to thousands of healthcare organizations across North America.
DAS Health, known for its IT, cybersecurity, revenue cycle management, and business solutions, has made a significant impact, improving care for over 15 million patients. The company, headquartered in Tampa, FL with regional offices in 15 US states and Canada, is a longstanding advocate and partner for healthcare providers, streamlining workflows, increasing efficiency, protecting earnings, and maintaining system security.
Sheridan Capital Partners, which invested in DAS Health in 2021, will retain a minority ownership position and continue to support the company's growth. The deal, advised by Latham & Watkins LLP, indicates a significant private equity transaction in the healthcare IT sector.
Coalesce Capital invests in human capital-driven and technology-enabled services companies. Stephanie Geveda, Founder & Managing Partner at Coalesce Capital, expressed excitement about investing in DAS Health, noting the company's proven track record for delivering reliable, mission-critical solutions.
Michelle Jaeger, President & CEO of DAS Health, stated that the investment underscores their commitment to delivering innovative solutions that help healthcare organizations operate more efficiently and improve patient care. Coalesce Capital will support DAS Health's growth by investing in technology, talent, and strategic acquisitions.
The financial terms of the transaction were not disclosed. However, based on Coalesce Capital's profile as an investment firm that focuses on growth and operational enhancement, it is reasonable to expect that DAS Health will pursue expansion or enhancement of its healthcare IT services, maintaining its core objective of improving profitability and efficiency for its clients.
Lazard and Latham & Watkins, LLP served as financial advisor and legal advisor respectively to Coalesce Capital, while Houlihan Lokey and McDermott Will & Emery LLP served in similar roles for DAS Health and its shareholders.
Coalesce Capital's growth-oriented investment philosophy centers around its conviction that people are the most important ingredient of value creation. As DAS Health moves forward under Coalesce Capital's majority ownership, it is expected to continue its mission to increase healthcare provider efficiency and profitability.
The acquisition marks a strategic development for both companies, signifying a promising future for DAS Health and the healthcare IT sector as a whole.
Cloud technologies will likely be invested in by Coalesce Capital to support DAS Health's growth, given their focus on technology-enabled services. The company's commitment to maintenance and enhancement of system security will remain essential as it complies with the ever-evolving news and regulations in healthcare IT.
