Category: Sverica News

Boston, Massachusetts – February 1, 2018 – Sverica Capital Management LLC (“Sverica”) and GTCR announced today the signing of an agreement to recapitalize Resonetics LLC (“Resonetics”).  Sverica increased its investment alongside GTCR, which acquired a majority interest in the company.  Resonetics management will continue in their existing roles and be significant shareholders in the company.  The transaction is expected to close in early February.

Founded in 1987 and headquartered in Nashua, New Hampshire, Resonetics is a leading medical device contract manufacturing organization (“CMO”), specializing in laser micro-manufacturing for interventional medical devices. The company’s capabilities include precision laser prototyping and manufacturing, including creating features as small as one micron, a fraction of a human hair, in a variety of materials. Over the past 30 years, Resonetics has developed a diverse base of blue chip medical device customers, a highly experienced team of technical engineers and scientists, and a well-positioned facility network in major medical device manufacturing hubs. This platform enables the company to work with its customers across a wide range of interventional products and medical device segments, including neurovascular, diabetes, structural heart and other interventional products.

This marks an important milestone in what has been a very successful partnership between Sverica and Resonetics. In 2014, Sverica acquired Resonetics and has since worked with management to build a North American leader in medtech manufacturing. Since Sverica’s investment, the Company has grown from one to six locations, executed two strategic acquisitions and tripled revenue. Chip Hance, ex-CEO of Creganna and a Resonetics board director, will continue to play a leadership role, working with Tom Burns, Resonetics CEO, in growing the company into a global leader.

“Sverica has been a great partner, supporting the dramatic growth of Resonetics over the last three years. GTCR has an impressive track record in the healthcare space helping companies grow via organic initiatives and through strategic acquisitions. We look forward to continuing the relationship with Sverica and working with Chip and GTCR to enhance our ability to serve the medtech industry with a broader set of capabilities,” said Tom Burns of the transaction.

Dave Finley, Managing Director at Sverica, said “Resonetics has been a very successful growth story for Sverica’s business-builder model across our High-Value Industrial and Healthcare verticals. We were very pleased to extend the relationship with Chip Hance, Tom Burns and the Resonetics team, and to work with GTCR and the resources they will bring to bear to continue to grow and scale the company.”

About Resonetics
Founded in 1987, Resonetics is a pioneer in laser micro manufacturing and provides contract manufacturing services to the life sciences industry. Resonetics designs, builds and integrates its own laser workstations to solve complex manufacturing challenges and has invested heavily in leading edge technology. Combining state-of-the-art laser systems with a large and innovative technical team allows Resonetics to partner with customers and provide winning solutions that meet all technical, quality and economic requirements. Learn more at www.resonetics.com.

San Francisco, CA – October 26, 2017 – Sverica Capital Management LLC (“Sverica”), a private equity investment firm, announced today it has reached an agreement to sell Syscon Justice Systems Ltd. (“Syscon”) to N. Harris Computer Corporation (“Harris”), a wholly-owned division of Constellation Software Inc. (TSX: CSU) (“Constellation”).  Based in Richmond, British Columbia, Syscon is a provider of Offender Management Systems (OMS) to various county, state, and national governments throughout the world.

Sverica acquired a majority interest in Syscon in July 2010. Over the course of its investment, Sverica recruited a new management team and invested in technology modernization efforts which have allowed Syscon’s feature-rich solutions to be deployed at top-end corrections agencies and manage over 400,000 offenders globally.

Jean (John) Soucy, President of Harris’ Public Sector Group, commented, “The acquisition of Syscon expands our capability to serve correctional institutions across North America, the United Kingdom and Australia. We are excited to have the opportunity to bring forth such comprehensive OMS applications, thanks to Syscon’s global team of specialists.”

“Sverica has been a tremendous partner to Syscon as we continue to build market leading Offender Management software solutions for governments throughout the world,” said Syscon CEO Mark Derraugh. “The support and guidance provided by Sverica has positioned us well for future success with Harris.”

About Syscon
Syscon is a leading international provider of Offender Management Systems, with major deployments in the US, Canada, UK, and Australia. Syscon offers a full suite of solutions, including prison management, jail management, trust accounting, inmate health records, probation and parole monitoring, and risk assessment tools. For more information, visit http://www.syscon.net/

Boston, Massachusetts – August 28, 2017 – Sverica Capital Management LLC (“Sverica”) today announced that portfolio company Resonetics has acquired Aduro Laser (“Aduro”).  The investment marks Resonetics’ second acquisition following the original acquisition of Resonetics by Sverica in 2014.

Based in Davis, CA, Aduro is an emerging leader in laser processing of tubular components for the medical device industry, serving leading companies in structural heart, peripheral vascular and minimally invasive surgery markets.  In just four years, Aduro has established an innovative business model and proprietary technology to shorten lead times dramatically, enabling customers to iterate rapidly and reduce time to market. With a relentless focus on efficiency and eliminating waste, the company also offers incredible value and makes broader adoption of interrupted spiral cut tubing economically viable. Resonetics will market the service as PRIME™ Laser Cut Tubing, a best-in-class solution for quick turn and high volume laser cut tubing used extensively in catheter delivery systems, Nitinol implants and single use instruments.

“We are very excited to partner with Grayson Beck and Demian Backs, who have created a disruptive business model in Aduro,” said Tom Burns, Resonetics CEO. “We share a similar culture with an emphasis on innovation, speed and customer satisfaction. Resonetics will expand capacity with a new facility, additional equipment and more engineering resources to keep lead times the best in the industry.”

“After more than 45 years of laser manufacturing and machine building experience, Demian and I knew we wanted to create something different,” added Grayson Beck, Co-founder and CEO of Aduro Laser. “Joining forces with Resonetics provides additional resources and synergies to provide solutions to our customers on a larger scale.”

Dave Finley, Managing Director at Sverica said, “We are excited to continue to build the capabilities of the premier pure-play laser micro-manufacturing company in the medical device manufacturing industry. Resonetics was acquired in 2014 as a single-location, polymer-focused laser processor of components. Less than three years later, we have entered the metals segment of the industry and service customers globally through six locations. Resonetics is a textbook example of what Sverica strives to do in lower-middle-market investing.”

About Resonetics
Founded in 1987, Resonetics is a pioneer in laser micro-manufacturing. Resonetics has a passion for deploying lasers to solve complex manufacturing challenges for the medical device and diagnostics industry and has invested heavily in leading edge technology and developing laser experts. Resonetics designs and builds its own laser workstations and has more than 80 laser workstations in-house, covering a wide spectrum of laser types and wavelengths, including the latest femtosecond and picosecond technologies. Combining state-of-the-art laser systems with a large and innovative technical team allows Resonetics to partner with customers and provide winning solutions that meet all technical, quality and economic requirements.  For more information, please visit www.resonetics.com.

Boston, Massachusetts – August 10, 2017 – Sverica Capital Management LLC (“Sverica”) today announced that it had acquired a majority interest in Women’s Health USA (“WHUSA”).  The investment marks Sverica’s fourth investment from Fund IV.

Based in Avon, CT, WHUSA is a leading national physician practice management organization focused on women’s health, including OBGYN and In Vitro Fertilization.  WHUSA provides physician practices with a full suite of practice management solutions including revenue cycle management, payor contracting, EMR & technology management, financial & accounting, risk management, and others.  WHUSA’s unique model creates true partnerships, which allow affiliate physician groups to retain their identity and autonomy while providing best-in-class operational management, capital for growth, and liquidity to partner physicians.  Robert E. Patricelli, founder and CEO, said, “Our new partnership with Sverica will give WHUSA the capital and backing to grow faster and to be more supportive of women’s health physicians who are looking to remain independent but at the same time be part of a national network of high quality professionals.”

Dave Finley, Managing Director at Sverica said, “We are pleased to partner with WHUSA and its management team to continue building the leading women’s health organization in the US.”  Gregg Osenkowski, Vice President at Sverica added, “We were attracted to WHUSA because of their joint venture model which allows physicians to remain autonomous but also leverage all the resources and expertise of a national practice management platform.”

About Women’s Health USA
Founded in 1997, WHUSA provides OBGYN, In Vitro Fertilization, and other specialty women’s health practices with a full suite of practice management solutions including payor contracting, revenue cycle management, EMR support, financial & human resources management, merger & acquisition support, ancillary services development, and risk management services.  WHUSA’s unique partnership model enables physicians and physician groups to maintain their independence, while leveraging the resources of a national organization.  For more information, please visit www.whusa.com.

Boston, Massachusetts – July 27, 2017 – Sverica Capital Management LLC (“Sverica”) today announced the signing of a purchase agreement to sell Offsite Archive Storage and Integrated Services (“OASIS” or “the Company”) to Montagu Private Equity.

OASIS is a fast-growing provider of Records and Information Management (RIM) solutions, including secure document storage, shredding, imaging and scanning, and data management. This marks the culmination of a very successful partnership between Housatonic Partners (“Housatonic”) and Sverica in the building of a European RIM, during which the Company executed over twenty add-on acquisitions, increasing revenue approximately 4x during Housatonic’s and Sverica’s eight-year investment period.

After becoming the first institutional investors in OASIS in 2009, Housatonic and Sverica supported an experienced management team, which were brought to the Company by the investors, in expanding the Company’s footprint from the Republic of Ireland to include the UK, Belgium and the Netherlands. The 2014 acquisition of Cintas’s European RIM assets was a transformational investment that provided a strong foothold on the European mainland with valuable data management capabilities.

Will Thorndike, Managing Director at Housatonic, said “We were very excited to partner with Dennis and Brian at Oasis which was our fourth investment (and second with Dennis at the helm) in records management — an industry which exemplifies the economic characteristics we focus on. Dennis and Brian have done a terrific job building the business and we wish them the best of luck going forward with their new partners.”

“The tremendous growth and business transformation accomplished by OASIS during our investment period would not have been possible without the deep experience of industry veteran and Executive Chairman Dennis Barnedt and the skillful leadership of CEO Brian Connolly,” said Dave Finley, Managing Director at Sverica. “We are grateful we had the opportunity to serve as the first institutional capital provider to the Company, and are pleased with what we were able to accomplish together.”

“Housatonic and Sverica have been fantastic partners and were instrumental in facilitating our growth,” said Dennis Barnedt. “Their vision of consolidating a fragmented European RIM market allowed us to take advantage of the huge market opportunity that we will continue to pursue with Montagu.”

About OASIS Group
Serving clients since 1999, OASIS Group is one of the largest and most diverse professional record and information management companies in Europe. Headquartered in Dublin, Ireland with locations across the EU, OASIS Group employs over 300 team members and offers its services to over 5,000 clients throughout several industries including financial, legal, healthcare, government and educational sectors. Most recently, OASIS Group was awarded a position on the ‘Inc. 5000 Europe 2017’ list of fastest-growing private companies in Europe. For more information, visit www.oasisgroup.com

San Francisco, California – June 21, 2017 – Sverica Capital Management LLC (“Sverica”), a private equity investment firm, announced today that they have acquired iWave Information Systems Inc. (“iWave” or the “Company”) from Jamie Hill of Charlottetown PEI.  This acquisition marks Sverica’s third investment made from its fourth fund. iWave is a Software as a Service (SaaS) company that offers fundraising intelligence to healthcare, education, and non-profit organizations.

Based in Charlottetown, Prince Edward Island, Canada, iWave provides access to data and proprietary analytics to help prospect researchers, fundraisers, and other development professionals determine which donor prospects to ask, how much to ask for, and when to ask.  For the past five years, iWave has been one of the fastest growing prospect research software companies in North America and currently serves more than 2,000 client organizations.  The partnership with Sverica will further the Company’s goal to become a stronger global prospect research data and software company.

“Partnering with Sverica will expand our capacity to deliver the best value for our client organizations, provide rewarding careers for our team members and create value for our stakeholders,” said Gerry Lawless, iWave CEO. “Most importantly, this will position us to build on our long-term strategy to produce a category leading-company that fundamentally changes the way nonprofits find major gifts to support their great causes.”

Ross Beattie is joining the Company as Executive Director and Vice Chairman, bringing deep leadership experience as the former CEO of HGS Canada. “iWave has a great opportunity to build upon its momentum, and we are excited to partner with Sverica as we continue to grow.  iWave is well positioned to become the leading provider of fundraising intelligence, and we look forward to leveraging Sverica’s experience in realizing that vision,” said Ross Beattie.

Jordan Richards, Managing Director at Sverica, added “Gerry and the iWave team have built a great company that has experienced significant growth over the past five years while serving their clients with a powerful data-driven software solution.  We are excited to partner with Ross and Gerry and reinvest back into the Company to create new avenues of growth and opportunity for the Company’s employees, customers, and partners.”

About iWave
iWave bundles philanthropic and wealth data into user-friendly software solutions.  iWave’s “360 Search” capabilities allow subscribers to efficiently research individuals and companies across multiple datasets through one unified search and their batch analytics capabilities allow users to screen entire prospect databases at once.  From schools like Yale and Stanford to healthcare and arts organizations like Doctors Without Borders and the Smithsonian Institute, iWave has assisted over 6,000 organizations in the United States, Canada, and overseas.  For more information, please visit www.iWave.com

Emeryville, California – February 27, 2017 – Sverica Capital Management LLC (“Sverica”) announced today the sale of Sheet Music Plus LLC (“Sheet Music Plus” or “SMP”) to Hal Leonard LLC. Founded in 1997, Sheet Music Plus is a leading online retailer of sheet music with a library of over 1 million titles.

Over the course of Sverica’s investment, Sheet Music Plus meaningfully expanded its catalog, introduced digital titles to accompany its assortment of print products, unveiled a robust new website, and launched innovative programs allowing composers and arrangers to upload works to the SMP website.

“We greatly appreciated Sverica’s support and guidance as Sheet Music Plus has cultivated a vibrant community of musicians, teachers, and composers,” said Sheet Music Plus CEO Jenny Silva. “Our partnership with Sverica has positioned us for continued success in a new chapter with Hal Leonard.”

“The dedication and vision of Jenny and her team are apparent in the numerous ways Sheet Music Plus engages customers and their passion for music,” said Ryan Harstad, Vice President at Sverica. “We enjoyed partnering with management to innovate and build SMP into an industry leader.”

About Sheet Music Plus
Founded in 1997, Sheet Music Plus is the world’s largest online retailer of sheet music. Its website, www.sheetmusicplus.com, offers shoppers over 1 million songbooks, scores, and instructional books. SMP’s unparalleled selection and availability of products is appreciated by its international customer base and a key point of distinction. Sheet Music Plus stocks over six times the number of products carried by the average print music retailer, and has developed a proprietary system for rapidly sourcing “hard to find” titles. Leveraging its strong relationship with suppliers, Sheet Music Plus has become a print music resource for music hobbyists, students, teachers, directors, librarians, and professionals.

San Francisco, California — February 1, 2017— Sverica Capital Management LLC (“Sverica”) today announced the closing of the sale of Optiv Security (“Optiv”), a market-leading provider of end-to-end cyber security solutions, to KKR. This marks the culmination of a very successful partnership with Optiv, and its predecessor company, Accuvant Inc., during which the Company experienced extraordinary growth, increasing revenues more than 14x and EBITDA more than 30x over Sverica’s eight-year investment period.

After becoming the first institutional investor in Accuvant in 2008, Sverica helped refine the Company’s strategy, augment the management team, and optimize its organizational structure. Sverica helped drive strategic M&A and supported significant investments in infrastructure and talent. Over the course of six years, Accuvant was successfully transformed from a small, emerging reseller focused on information security, into one of the leading national cyber security services providers in the world. In 2014, Sverica sold a majority stake in Accuvant to Blackstone (NYSE: BX), but remained a key shareholder and board member. Accuvant then merged with Fishnet Security in early 2015 to form Optiv.  This strategic merger was a tremendous success and has since solidified Optiv as the dominant end-to-end cyber solutions provider with a clear market leadership position.

“The massive growth and business transformation accomplished with this business during our investment period would not have been possible without a tremendous partnership with management,” said Frank Young, Managing Director at Sverica. “The original founders and many executives and board members we worked with over the years at the Company were exceptionally talented and a pleasure to work with. We are grateful we had the opportunity to serve as the first institutional capital provider to the Company, and are thrilled with what we were able to accomplish together.”

“Sverica has been a fantastic partner and was instrumental in helping to accelerate our growth,” said Dan Burns, Co-Founder and Chief Executive Officer of Optiv. “Their investment and strategic input allowed us to take advantage of the huge market opportunity in security and has been invaluable to our success.”

About Optiv Security
Optiv is a market-leading provider of end-to-end cyber security solutions. Optiv helps clients plan, build and run successful cyber security programs that achieve business objectives through the Company’s depth and breadth of cyber security offerings, extensive capabilities and proven expertise in cyber security strategy, managed security services, incident response, risk and compliance, security consulting, training and support, integration and architecture services, and security technology. For more information, visit www.optiv.com.

Akron, OH – October 1, 2016 – Sverica Capital Management LLC (“Sverica”), a private equity investment firm, announced today it has reached an agreement to sell a majority stake in Inpatient Medical Services, Inc. (“IMS”) to Island Medical Management, LLC (“Island Medical”) for an undisclosed amount. Based in Akron, Ohio, IMS is a leading provider of hospitalist and post-acute care physician services in Ohio, Indiana and Kentucky.  Sverica will retain a minority interest in the business.

Sverica acquired a majority interest in IMS in September 2012. Over the course of its investment, Sverica recruited a new management team, expanded the company’s geographic footprint and entered the post-acute care physician services market through the acquisition of Advanced Healthcare Associates (“AHA”).

“We are happy to be partnering with an organization such as Island Medical to continue IMS’ mission of providing the highest quality medical care to patients in central Ohio, Indiana and Kentucky” said Frank Young, Managing Director of Sverica and Chairman of the Board of IMS.  Mr. Young continued, “Island Medical has built a strong platform and IMS further solidifies that position.”

About IMS
Inpatient Medical Services, Inc. is a leading provider of outsourced hospitalist and post-acute care physician programs to acute care facilities and skilled nursing facilities in Ohio, Indiana and Kentucky. IMS serves over 150,000 patients annually and has built a premier reputation with community physicians who rely on IMS as its inpatient service partner. The Company’s quality and value proposition is validated by its long-term relationship with some of the top healthcare systems in the region and nationally.  For more information, please visit http://www.imshospitalist.com/

About Island Medical
Island Medical Management, LLC is a clinically-led, privately-held organization with over 20 years of management experience. IMM’s unique model offers every advantage of a local community based group, backed by the resources of a national organization. The group provides services to over 75 hospital programs throughout the United States, with more than 1.6 million patient encounters each year. IMM is a portfolio company of New Mountain Capital, LLC, a New York based investment firm with over $15 billion in aggregate capital commitments.  For additional information, please visit http://www.immh.com/

Boston, Massachusetts – August 9, 2016: Sverica Capital Management LLC (“Sverica Capital”), a private equity investment firm, announced today that Sverica Fund IV has acquired a majority stake in RMS Healthcare Management, LLC (“RMS”), which provides management services to Med First Immediate Care and Family Practice, P.A. (“Med First”). This transaction marks Sverica’s second investment made from Fund IV.  Cadiz Capital LLC also participated in the transaction.

Headquartered in Jacksonville, NC, Med First provides convenient primary care, urgent care and occupational medicine services via 13 clinic locations across rural North Carolina and South Carolina. The Company addresses the unmet healthcare needs of rural populations through a hybrid primary care and urgent care model. Med First is a Patient-Centered Medical Home (“PCMH”) and participant in the North Carolina Medical Society’s Rural ACO initiative. Dr. Randy Schilsky, founder and CEO of RMS, will remain involved in business development for Med First moving forward. “I am excited to partner with an experienced healthcare investor like Sverica Capital. Their track record working with growing healthcare companies was a major factor in my decision to select them as a partner.”

Dave Finley, Managing Director at Sverica Capital, commented: “Randy has built a wonderful company with a strong reputation in rural North Carolina.  We look forward to helping Med First expand its unique model into other rural markets in the Southeast.” Gregg Osenkowski, Vice President at Sverica Capital added: “Med First is one of only a small number of primary care practices that are both Patient Centered Medical Home certified and offer the convenience of an urgent care model. This combination is particularly relevant for rural markets where there is a chronic shortage of quality primary care services.” Joining Dave Finley and Gregg Osenkowski on the Board of Directors will be Julius Spears and Dr. Edward Murphy. Mr. Spears was formerly CEO of Providence Hospital in Washington, D.C. and COO of Grady Memorial Hospital in Atlanta, GA. Dr. Murphy was formerly CEO of Carillion Clinic in Roanoke, VA as well as Director of RestorixHealth, a previously realized investment of Sverica Capital.

About Med First
Med First operates healthcare clinics across North Carolina and South Carolina. The company focuses on rural communities with a hybrid model that provides both primary and urgent care. Med First currently manages 13 locations. For more information, please visit http://www.thinkmedfirst.com.