Tech Roundup: AlayaCare raises $13.8M, Allscripts To Sell Stake in Netsmart

AlayaCare raises $13.8 million 

AlayaCare, a Montreal, Cananda-based software startup, has raised $13.8 million in Series B funding, led by inovia capital.

AlayaCare is an integrated platform and secure cloud-based system that includes client and family portals, remote patient monitoring and telehealth. The company was founded in 2014 and now employs more than 100 staff members with operations in the United States, Canada and Australia.

The platform focuses on home health providers.

inovia capital is a full-stack venture capital firm that manages $500 million across three funds. The company has Canadian offices in Montreal and Toronto, along with U.S. operations in San Francisco and California. In addition to North America, inovia capital also has an office in London.

The $13.8 million will be used to fund AlayaCare’s continued expansion and further investment into its technology platform, according to the company. Expansion plans will prioritize the U.S. market.

“We’re passionate about helping our clients deliver better patient outcomes and this funding means we can accelerate through our roadmap and evolve our product more rapidly,” Adrian Schauer, AlayaCare CEO, said in an announcement. “Continuing to invest in AI, machine learning capabilities and optimization science is a priority as our increasingly robust platform means clients can lower their operating costs while improving their ability to provide care, detect adverse effects and help reduce hospital readmissions.”

inovia capital Principal Magaly Charbonneau will join AlayaCare’s board of directors.

Besides AlayaCare, inovia capital’s portfolio includes CareGuide, Well.ca, Thalmic Labs and more than 60 other companies

AlayaCare’s Series B announcement comes about a month after the company announced it had purchased Canesto Systems Inc., a contact and resource management software provider that is also based in Canada.

Ending Two Year Partnership, Allscripts Plans to Sell Stake in Netsmart

Allscripts (Nasdaq: MDRX) is ending its partnership with Netsmart after two years and plans to sell its 50% stake in the company.

Allscripts is a Chicago-based health care information technology solution with about 7,600 employees worldwide. Its client base includes 180,000 physicians across roughly 45,000 ambulatory facilities, 2,500 hospitals and 17,000 post-acute care organizations.

Netsmart designs and delivers electronic health record (EHR) services. The company is based out of Overland Park, Kansas. Netsmart launched a new cloud-based EHR system specifically designed for home health and senior living providers in 2018, EHR Intelligence reported.

Netsmart experienced continued strong new customer acquisitions in the second quarter of 2018, Allscripts President Rick Poulton said during a recent earnings call with investors. Netsmart specifically saw 40 new customer acquisitions with its new cloud-based platform, dubbed myUnity. The EHR business also acquired Change Healthcare in the second quarter.

Allscripts expects to complete the sale in the third quarter of 2018, according to Poulton.

“Seizing on the momentum we’ve created in Netsmart, during the quarter, we took further steps to position ourselves to unlock value for shareholders through monetizing our investment in Netsmart,” he said during the call. “After researching and discussing several possible alternatives, we began detailed negotiations with multiple parties on the sale of our interest. We have signed a letter of intent and buyer diligence currently continues.”

Allscripts purchased Netsmart in 2016 for $950 million in a joint venture with private equity investor GI Partners.

Written by Kaitlyn Mattson