Key Takeaways
- • Bain Capital Private Equity signed a definitive agreement on July 20, 2021 to acquire PartsSource, a Cleveland-based B2B online marketplace for medical equipment maintenance parts and services, from Great Hill Partners.
- • Financial terms were not disclosed in the company release, though a Bloomberg-attributed report cited by a publisher summary put the total enterprise value at $1.25 billion.
- • PartsSource will continue under its current management team led by President and CEO Philip Settimi, MSE M.D.
- • The transaction is expected to close in the third quarter of 2021, subject to customary conditions including regulatory approvals; Blue Owl Capital is leading debt financing.
- • PartsSource's network connects more than 3,500 hospitals, 15,000 clinics, more than 6,000 medtech OEMs and 2,000 medtech repair professionals.
Summary
Bain Capital Private Equity has agreed to acquire PartsSource, a leading online marketplace for medical equipment maintenance parts and services, from its current owner Great Hill Partners, according to a company announcement dated July 20, 2021. Financial terms of the private transaction were not disclosed in the primary release. A separate publisher-cited report described the deal as valuing PartsSource at a total enterprise value of $1.25 billion, citing sources familiar with the transaction; this figure has not been confirmed in the company's own statement.
Based in Cleveland, Ohio, PartsSource describes itself as the leading B2B marketplace for medtech replacement parts and services and the largest B2B online marketplace in US healthcare. Its cloud software and marketplace tools help hospitals source parts and services on demand, and its PRECISION Procurement powered analytics help hospitals optimize spend and supply chain visibility. The company said its marketplace connects more than 3,500 hospitals and 15,000 clinics with more than 6,000 medtech OEMs and 2,000 medtech repair professionals. In 2020 it extended its marketplace from parts into on-site and off-site repair services, offering access to over 2,000 service engineers.
PartsSource will continue to be run by its existing management team under President and CEO Dr. Philip Settimi. Settimi said the company was founded on an evidence-based, digital approach to the healthcare supply chain and thanked Great Hill Partners for its four-year stewardship. Devin O'Reilly, Managing Director at Bain Capital Private Equity, said the firm sees clear runway for organic growth and an opportunity to broaden the platform through strategic acquisitions, product innovation and international expansion. Mark Taber, Managing Director at Great Hill Partners, said the company had scaled dramatically and become the clear leader in its space.
The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions and regulatory approvals. Blue Owl Capital is leading debt financing. Robert W. Baird & Co. and Goodwin Procter advised PartsSource, while TripleTree and Kirkland & Ellis advised Bain Capital Private Equity. Bain Capital cited its healthcare and HCIT portfolio, which includes Waystar, Zelis, IQVIA, HCA Healthcare and Surgery Partners, among others.
Based in Cleveland, Ohio, PartsSource describes itself as the leading B2B marketplace for medtech replacement parts and services and the largest B2B online marketplace in US healthcare. Its cloud software and marketplace tools help hospitals source parts and services on demand, and its PRECISION Procurement powered analytics help hospitals optimize spend and supply chain visibility. The company said its marketplace connects more than 3,500 hospitals and 15,000 clinics with more than 6,000 medtech OEMs and 2,000 medtech repair professionals. In 2020 it extended its marketplace from parts into on-site and off-site repair services, offering access to over 2,000 service engineers.
PartsSource will continue to be run by its existing management team under President and CEO Dr. Philip Settimi. Settimi said the company was founded on an evidence-based, digital approach to the healthcare supply chain and thanked Great Hill Partners for its four-year stewardship. Devin O'Reilly, Managing Director at Bain Capital Private Equity, said the firm sees clear runway for organic growth and an opportunity to broaden the platform through strategic acquisitions, product innovation and international expansion. Mark Taber, Managing Director at Great Hill Partners, said the company had scaled dramatically and become the clear leader in its space.
The transaction is expected to close in the third quarter of 2021, subject to customary closing conditions and regulatory approvals. Blue Owl Capital is leading debt financing. Robert W. Baird & Co. and Goodwin Procter advised PartsSource, while TripleTree and Kirkland & Ellis advised Bain Capital Private Equity. Bain Capital cited its healthcare and HCIT portfolio, which includes Waystar, Zelis, IQVIA, HCA Healthcare and Surgery Partners, among others.
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