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Private Equity Firm Acquires Two Healthcare IT Service Providers

Hand arranging wood block stacking with icon healthcare medical, Insurance for your health concept

Private equity firm Performant Capital has acquired two healthcare-focused IT services businesses—DavLong Business Solutions and On Demand Solutions. Those acquired assets will be tucked into Provider Technology—a new corporate entity that offers outsourced software and IT services, revenue cycle management and back-office business support for physician practices and health systems. Financial terms of the acquisitions were not disclosed.

These are technology M&A deal numbers 701 and 702 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

Performant Capital Acquires DavLong and On Demand Solutions

Performant Capital is based in Chicago, Illinois. The company has four employees listed on LinkedIn. Performant Capital is a private equity firm focused on lower middle market investments in technology-driven companies. Performant acquires businesses across SaaS, technology-enabled services and data intelligence products and services.

DavLong Business Solutions, founded in 1983, is based in Savannah, Georgia. The company has eight employees listed on LinkedIn. DBS provides turnkey IT solutions for physician practices by fully hosting, maintaining, and supporting all software needs for the medical office, from cloud hosting to cybersecurity. DBS also has a proprietary suite of software offerings that integrate with third-party electronic health record and practice management systems, the company said.

On Demand Solutions, founded in 2007, is based in Boise, Idaho. The company has 19 employees listed on LinkedIn. ODS’ areas of expertise include practice management software, RCM, staffing support and business advisory services for healthcare service providers and organizations.

The businesses will continue to operate independently under their respective brands but will share best practices across all functional areas, according to the companies.

Chris McLaughlin, founding partner, Performant Capital
Chris McLaughlin, partner, Performant Capital

Chris McLaughlin, partner at Performant Capital, commented on the news:

“These businesses are highly complementary acquisitions that together provide enhanced technology capabilities and support services with broader geographic presence to better meet the needs of clients and improve their financial outcomes. Both businesses have a reputation of providing superior customer support as value-added partners to physicians and health organizations. Customers value our company as more than just a service provider, but extensions of their core teams. With an expanded presence and enhanced capabilities to drive further value for clients, we’re excited about the future of the combined business under Provider Technology.”

Performant, investing out of Fund I, closed the DBS and ODS transactions simultaneously in June. The Private Credit business within Goldman Sachs Asset Management provided first lien debt and an equity co-investment to support the acquisitions.

Healthcare IT M&A Activity

M&A activity in the healthcare IT space remains steady. Recent deals ChannelE2E has tracked include Healthcare Performance Group, Inc.'s acquisition of Health Data Specialists, LLC (HDS), The Carlyle Group’s acquisition of CNSI, the merger of Navin, Haffty & Associates with Engage IT Services and Ettain Group’s acquisition of Global Employment Solutions (GES) and Leidos Health.