Private Placement of Preferred Stock

Healthcare
Private Placement of Preferred Stock

Summary

Baird served as the exclusive financial advisor to Arcadia Healthcare Solutions on this transaction

About

Arcadia Healthcare Solutions (“Arcadia” or the “Company”) recently received a $30 million investment of growth capital from Merck Global Health Innovation Fund (“Merck GHI”), GE Ventures, and existing investors Peloton Equity, LLC (“Peloton”), Zaffre Investments, LLC (“Zaffre”), and Morgan Stanley Alternative Investment Partners (“Morgan Stanley AIP”).

Arcadia Healthcare Solutions is an EHR data aggregation and analytics technology company supporting ambulatory networks taking on risk and transitioning to value- based care. Arcadia specializes in integration of data from over 30 EHR vendors, enriching it with claims and operational data, and using that data to drive improvements in patient care quality, practice efficiency, and financial performance. Trusted by independent provider groups, health plans, and integrated delivery networks nationwide, with expertise in both fee-for-service optimization and value- based performance environments, Arcadia supports providers with the benchmark data, insights, and outsourced services to excel in the evolving landscape of American healthcare. Founded in 2002, Arcadia is headquartered outside Boston in Burlington, Massachusetts, with offices in Seattle, Pittsburgh, and outside Chicago in Rockford, Illinois.

Merck Global Health Innovation Fund invests in emerging companies that deliver breakthrough healthcare solutions which advance Merck's mission to discover, develop, and provide innovative products and services that save and improve lives. Established in 2010, Merck GHI deploys its evergreen $500 million fund to rapidly identify and develop transformative global health care opportunities. Merck GHI is focused on identifying opportunities that are adjacent to Merck’s core business of pharmaceuticals and vaccines.

GE Ventures is committed to identifying, scaling, and accelerating ideas that will make the world work better. Focused on the areas of software, advanced manufacturing, energy, and healthcare, GE Ventures helps entrepreneurs and start-ups succeed by providing access to GE's technical expertise, capital, and opportunities for commercialization through GE Venture's global network of business, customers, and partners. GE Ventures offers an unparalleled level of resources through its Global Research Center, including: 35,000 engineers; 5,000 research scientists; 8,000 software professionals; as well as 40,000 sales, marketing, and development resources in over 100 countries.

Peloton Equity, LLC is a newly-formed private equity firm that focuses exclusively on growth capital investments in the lower middle market of the healthcare industry. Peloton’s portfolio includes HealthPlanOne, a leading technology-enabled digital marketing firm specializing in Medicare and individual and family health insurance sales and distribution. Peloton leverages its extensive healthcare network, value-building diligence and investment process, and portfolio management playbook to add value to its portfolio companies. Peloton seeks companies with between $20 and $200 million of revenue and the management team, market opportunity and business model to grow revenues meaningfully over the life of its investment.

Zaffre Investments, LLC is a wholly-owned subsidiary of Blue Cross Blue Shield of Massachusetts that is committed to adding value through investments in new products, services and technologies that aim to improve the way healthcare is delivered and received. Zaffre focuses on companies across the healthcare landscape, with a primary focus on ACOs, consumer solutions, health information technology, and behavioral health. Zaffre is stage agnostic, considering a company’s financial and market positions, capabilities, and core values, as well as their missions and visions for the future. Zaffre employs a true partnership model for its portfolio companies, providing strategic direction, business support, industry connections and more.

Morgan Stanley Alternative Investment Partners, part of Morgan Stanley Investment Management, specializes in assisting institutional and high net worth investors achieve their goals through the design and management of alternative investment programs. Established in 2000, Morgan Stanley AIP currently has approximately $36.4 billion in assets under management and advisement.
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Healthcare
Private Placement of Preferred Stock
Date
January 2017
Company
Arcadia Healthcare Solutions
Transaction
M&A
Sectors
Healthcare
Target Location
North America
Acquiror Location
North America

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