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Capstone Partners Advises Accurate Monitoring, LLC on its Recapitalization by Housatonic Partners

September 2016

Philadelphia, PA – Capstone Partners LLC, a leading international investment banking firm, announced that it has successfully advised Accurate Monitoring, LLC (“Accurate”) on its recapitalization with Housatonic Partners (“Housatonic”). The terms of the deal were not disclosed.

Accurate is a leading provider of outsourced Intraoperative Neurophysiological Monitoring (IONM) services to hospitals and surgical groups throughout New York and New Jersey. Accurate’s highly-skilled technologists and customized multimodality neuromonitoring protocol play a vital role in reducing the incidence of post-operative complications through early identification of emerging neural injury during surgery and facilitation of timely intervention by the surgical team. Additionally, the Company is lauded for its philosophical approach to neuromonitoring centered on the individual patient and focusing on risk factors that are specific to each surgical procedure.

Well regarded for the quality and clinical expertise of its staff, the Company has cultivated long-standing relationships with leading hospitals and top surgical teams in its market and was one of the first IONM providers to secure Joint Commission Accreditation. Accurate has achieved robust revenue growth since inception in 2007 and sought a growth equity partner to continue regional and national expansion. “After years of successful growth in New Jersey and New York, we are ready to expand our clinical services to new markets and are pleased to be partnering with Housatonic Partners,” commented Accurate CEO Frank Gazzillo. “The expertise and capital that Housatonic brings to the table should enable us to expand our ability to provide high quality outsourced clinical services to new markets.  We believe our patient centric clinical model which emphasizes clinician training, retention and outstanding service to hospitals/surgeons will be well received as we continue to grow.”

Housatonic Partners, a private equity investment firm with more than $1.3 billion in capital under management, has backed exceptional management teams in more than 90 small to mid-sized companies over the last 22 years. The newly-formed partnership between Accurate and Housatonic comes at a time when specialized outsourced clinical service companies are benefiting from increased emphasis on patient outcomes, greater number of insured individuals and increased healthcare utilization resulting from the Affordable Care Act, and the migration towards value-based reimbursement models from Medicare and private payers. “Healthcare providers are increasingly relying on outsourced service providers with the experience and clinical skill sets to help enhance patient safety, lower costs through reduced patient stays, respond quickly to fluctuating patient levels/demand, and avoid expensive and resource consuming hospital readmissions. Thus, we expect the outsourced clinical services sector to experience heightened M&A activity as private equity and strategic suitors look to capitalize on favorable demographic and industry trends,” said Eric Williams, Managing Director of the Philadelphia-based Capstone deal team. Mark Surowiak, Director at Capstone, added, “The IONM sector, which is highly fragmented and benefiting from an aging population and an increased prevalence of chronic disease, has seen two major deals completed within the past few months. In addition to the Accurate deal, leading medical device company NuVasive acquired IONM provider Biotronic NeuroNetwork for $98.0 million."

 

"The Capstone team did an outstanding job handling our transaction; I am very thankful for their hard work.  They are professional, knowledgeable and a pleasure to work with.  Their ability to analyze the deal and negotiate with the buyer was a huge benefit to us financially while allowing us to remain focused on running our business.  We would not have made it through this process without them; I am forever grateful."  
Frank Gazzillo
Owner
Accurate Neuromonitoring