Merger: DAS Health, a prominent figure in Healthcare IT and Business Solutions, has been acquired by investment firm Coalesce Capital.
In a strategic move to extend its reach in the healthcare technology sector, Coalesce Capital has announced the acquisition of a majority stake in DAS Health, a leading provider of IT and business solutions for healthcare organisations across North America.
Based in Tampa, Florida, DAS Health boasts a strong presence in 15 US states and Canada, with its solutions improving care for over 15 million patients. The company offers a wide range of services, including managed IT services, cybersecurity, revenue cycle management, value-based care, patient engagement, compliance, and practice management solutions.
As part of the acquisition, Coalesce Capital, a private equity firm with over $1.4 billion of regulatory assets under management, plans to leverage DAS Health’s established expertise in healthcare IT and business solutions to expand into the Canadian market. This move is strategic in broadening DAS Health’s geographic footprint beyond its existing operations.
Sheridan Capital Partners, which invested in DAS Health in 2021, will retain a minority ownership position and continue to support the company's growth. Sheridan Capital Partners, a healthcare private equity firm based in Chicago, focuses on lower middle market buyouts and growth equity in the U.S. and Canada.
Coalesce Capital's strategy for DAS Health centres around investing in technology, talent, and strategic acquisitions to drive growth. The firm's growth-oriented investment philosophy is rooted in the belief that people are the most important ingredient of value creation.
Michelle Jaeger, President & CEO of DAS Health, expressed her excitement about the partnership, stating, "We are thrilled to partner with Coalesce Capital to accelerate our growth and expand our reach into new markets. Their strategic resources and capital will be instrumental in our mission to provide innovative solutions and exceptional service to healthcare organisations across North America."
Lazard served as financial advisor, and Latham & Watkins, LLP served as legal advisor to Coalesce Capital during the transaction. Meanwhile, Houlihan Lokey served as financial advisor, and McDermott Will & Emery LLP served as legal advisor to DAS Health and its shareholders.
Coalesce Capital's collaboration with DAS Health's management team is expected to create shared success, as the firm leverages its sector expertise and strategic resources to support the company's growth. With this acquisition, Coalesce Capital is executing a growth and market expansion strategy, aiming to extend its healthcare IT solutions into new geographic territories while continuing to support physician practices with technology-driven operational improvements.
[1] Source: Coalesce Capital press release, 2023 [3] Source: DAS Health press release, 2023
- The partnership between Coalesce Capital and DAS Health will facilitate the expansion of DAS Health's reach into new markets, utilizing Coalesce Capital's resources in technology, talent, and compliance to bolster security and drive growth, aiming to provide innovative solutions and exceptional service to healthcare organizations.
- Coalesce Capital, in its strategy for DAS Health, will prioritize investing in technology and strategic acquisitions, while maintaining a strong focus on compliance, as part of its endeavor to extend its healthcare IT solutions into new geographic territories, thereby solidifying its position in the technology sector and enhancing the overall service quality for millions of patients.
