Net Health to Acquire Optima Healthcare Solutions; AlayaCare Secures $33M in Growth Funding

Out-patient software provider Net Health announced Tuesday it has entered into an agreement to acquire Optima Healthcare Solutions, bringing the company firmly into the home health and hospice segments of the post-acute realm.

Terms of the deal — expected to close later in July — were not disclosed.

Led by Chairman and CEO Anthony Sanzo, Pittsburgh-based Net Health is a portfolio company of growth equity firm Level Equity and global investment firm The Carlyle Group, the latter of which has more than $222 billion of assets under management. So far, Net Health has brought its software platforms to about 3,000 urgent care, wound care, physical therapy and other out-patient facilities across the U.S.

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With offices in Florida, Georgia, Oregon and Utah, Optima’s lengthy list of post-acute care clients includes contract therapy companies, continuing care retirement communities, skilled nursing facilities (SNFs) and assisted living communities, along with home health and hospice providers. Overall, more than 11,000 sites of service use Optima’s range of clinical operational and billing software solutions.

“Our combined products, expertise, talent, and resources will accelerate our ability to deliver the fully-connected data and predictive capabilities health care providers need to thrive in a value-based world,” Sanzo said in a statement announcing the deal.

The combined company — which will operate under the Net Health name — is expected to serve patients in more than 14,000 facilities across North America.

Sanzo will maintain his roles as chairman and CEO throughout the integration of Optima and Net Health. Post-integration, he will transition into the role of Net Health’s executive chairman, with current Optima President and CEO Josh Pickus becoming the combined company’s chief executive officer.

“This transaction will allow us to expand our vision of enabling the cross-continuum care that patients deserve and our health care system demands,” Pickus said. “As our customers navigate upcoming regulatory change, this transaction positions us to do even more to help them deliver industry-leading provider experiences and patient outcomes.”

The regulatory change includes the Patient-Driven Groupings Model (PDGM) in the home health industry, as well as the Patient-Driven Payment Model (PDPM) in the SNF world.

The merged Net Health-Optima enterprise will also be headquartered in Pittsburgh.

On Optima’s end, selling shareholders include Alpine Investors, the company’s prior partner. The Carlyle Group and Level Equity each invested additional equity in the deal.

AlayaCare lands $33 Million

Montreal-based home health software company AlayaCare also announced Tuesday that Inovia Capital, Caisse de dépôt et placement du Québec (CDPQ) and Investissement Québec have invested $51 million (CDN) in the company, buying $33 million in new equity from AlayaCare in addition to $18 million of stock from early investors. 

The new growth capital will allow AlayaCare to reinforce its research-and-development capabilities and optimize its technology, according to the company.

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 200 staff members, with operations in the United States, Canada and Australia.

“Home care is evolving at a frenetic pace, and the market is clearly shifting to a technology-enabled delivery model that expands the boundaries of care,” AlayaCare CEO Adrian Schauer said in a statement announcing the news. “We are grateful that our capital partners, led by Inovia, share this vision and are propelling AlayaCare toward our ultimate goal: keeping millions of people well in the comfort of their homes.”

In U.S. currency, $33 million CDN is equivalent to about $25.2 million.

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