As the new CEO, I look forward to working with TowerBrook to build upon Broadlane’s unique market position and prestigious client base and continue to enhance the services and value we deliver.
Dallas, TX (Vocus) June 23, 2008
Broadlane announced today that TowerBrook Capital Partners L.P., a private equity firm based in New York and London, has signed a definitive agreement to acquire a majority interest in the company. Under terms of the agreement, Broadlane’s senior management team will continue to retain a significant ownership interest in the company. Terms were undisclosed and completion of the transaction, which remains subject to approval by regulatory authorities and other closing conditions, is expected to occur in the third quarter of 2008. Debt financing for the transaction will be provided by Jefferies Finance LLC. Citigroup served as exclusive financial advisor to Broadlane.
Broadlane’s chairman and chief executive officer Charles E. Saunders, M.D., who has been with the company since 2003, has announced that he will step down from his current position upon the closing of the transaction. David C. Ricker, Broadlane’s founder, president and chief operating officer, will succeed Dr. Saunders as Broadlane’s chief executive officer. In addition, a new fully-independent board of directors will be named following the completion of the transaction. Furthermore, upon successful completion of the transaction, Tenet Healthcare will no longer maintain an ownership interest in the company, but will remain a Broadlane client.
“This represents an exciting milestone in Broadlane’s history,” said Saunders. “We’ve enjoyed strong growth and adoption of our services by a loyal and growing base of prestigious clients and have developed a unique value proposition for healthcare. Now it’s time for Broadlane to reach a new level as a fully-independent company with a strong financial platform that will enable continued innovation and enhancement of our technology and services to further reduce the cost of care and create operational efficiencies for our healthcare clients.” Saunders added, “I have no doubt Broadlane’s leadership position in the industry will continue under the guidance of David Ricker.”
Ian Sacks, management partner, TowerBrook, added, “We have known Broadlane for some time and have been very impressed with the quality of the company’s management team, its unique and differentiated array of services and technologies, and its strong focus on service and delivering value to its clients, which include some of the largest and most successful healthcare systems in America. We believe that Broadlane will continue to be an innovative force in the healthcare sector and an ideal platform for continued growth, diversification and client value.”
“We appreciate Dr. Saunders’ leadership over the years in developing Broadlane into a strong, highly-respected and growing company known for its innovative services and technology, and we wish him well,” said Ricker. “As the new CEO, I look forward to working with TowerBrook to build upon Broadlane’s unique market position and prestigious client base and continue to enhance the services and value we deliver.”
Bill Murray, president of Sisters of Charity of Leavenworth Health System, one of Broadlane’s largest clients, said, “Broadlane, through an outsourced relationship, has done a tremendous job working with us to implement and manage our supply chain infrastructure, which includes clinician alignment through our value analysis teams, centralized contracting and procurement processing and integrated supply chain technology. Their commitment to our healthcare system and our values, technology innovation and operational expertise and absolute focus on results, helped bring us to a new level of performance as a system. We believe that with deeper financial resources at their disposal, along with the commitment of TowerBrook, Broadlane’s services and support will be enhanced to our benefit, and our good, long-term relationship will become even stronger.”
Broadlane is a leading technology-oriented healthcare services company that reduces cost and creates operational efficiencies for thousands of acute care hospitals, ambulatory care facilities, physician practices and other healthcare providers in the United States. Its core services include supply chain management and clinical workforce management services.
Broadlane’s comprehensive supply chain services include:
- High-powered national and custom contracting for supplies, pharmaceuticals, equipment and purchased services
- Innovative Procurement Services and purchase transaction management
- Clinical Services for managing clinical preference items and operating room and cath lab spending
- Comprehensive Materials Management Services – including outsourcing
- Informatics – benchmarking, advanced analytics and reporting
- Supply chain technology and e-commerce
Broadlane’s clinical workforce management services address nurses and allied healthcare practitioners and include:
- External shift and agency management services
- Internal shift management, including electronic shift auctions
- Regional nurse float pool management and internal agency management
- E-commerce workforce exchange linking healthcare providers, clinical staff and agencies, enabling efficient shift management and fulfillment and reconciliation
Broadlane's clients include leading providers such as Advocate Health Care, Ascension Health, Beaumont Hospitals, CHRISTUS Health, Continuum Health Partners, Kaiser Permanente, Kindred Healthcare, MedCath Corporation, New Hanover Regional Medical Center, Sisters of Charity of Leavenworth Health System, St. Luke’s Episcopal Health System, Tenet Healthcare, The Health Alliance of Greater Cincinnati, US Oncology and UMass Memorial Health Care.
The company is headquartered in Dallas with offices in Cincinnati, Detroit, Houston, New York City and Oakland. For more information, visit http://www.broadlane.com.
About TowerBrook Capital Partners
TowerBrook Capital Partners L.P. is a private equity firm with in excess of $3.5 billion of capital under management. The firm has offices in New York and London and focuses on making investments in North American and European companies. TowerBrook primarily pursues control-oriented private equity investments in large and middle market companies, partnering with highly capable management teams, often in situations characterized by complexity. For more information, visit http://www.towerbrook.com.
Media Contact: Jim Webb
jim.webb @ broadlane.com
Investor Relations: Melinda May
melinda.may @ broadlane.com