N-Squared Growth Capital and NextServices form Strategic Partnership to Invest in Revenue Cycle Management Companies.

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N-Squared Growth Capital, a private investment firm, in partnership with NextServices, an outsourced provider of mobile, cloud-based EHR software, launches targeted investment initiative focused on revenue cycle management companies serving outpatient providers in the U.S.

The primary goal of the initiative is to create and grow leading technology-enabled healthcare services franchises.

N-Squared Growth Capital, LLC (“N-Squared”), a New York-based private investment firm focused exclusively on Healthcare and Technology/Business Services, is seeking to acquire and grow a diversified RCM platform that provides a single-source solution of outsourced RCM and EHR products and services centered on the ASC segment and other selected segments in the broader outpatient provider market.

A key aspect of N-Squared’s strategy is to explore opportunities that broaden the RCM platform’s technology capabilities, particularly as it relates to building capabilities that enable clinical / EHR-related solutions to be provided to the client base in addition to billing solutions.

“This initiative represents an important step in our desire to acquire and subsequently grow what we hope would ultimately be a leading provider of outsourced financial and clinical solutions focused on the ASC and broader outpatient provider segment in the U.S,” said Sudeep Das, Founder and Managing Partner of N-Squared. “As a firm, we have a core emphasis on healthcare IT broadly, and within that category, believe that RCM providers are uniquely positioned to experience attractive growth in the future. However, these businesses are increasingly being asked to do more by their clients, particularly as it relates to providing services that seamlessly integrate financial information with clinical information. In this regard, N-Squared’s partnership with NextServices is expected to be immediately accretive. We have known NextServices’s Co-Founder and CEO, Satish Malnaik, for a number of years, like the work they are doing, and believe that their EHR software capabilities could be attractive to a variety of RCM providers as these providers contemplate ways to provide broader outsourcing solutions to their clients.”

“This initiative is very much consistent with our goal of creating leading technology-enabled healthcare services franchises,” said Ted Bernstein, Managing Partner of N-Squared. “We are doing this by bringing together world-class management teams, with sophisticated financial and operating expertise, and deep capital resources in ways that enable us to meet this goal. We are highly active and hands-on investors, and look forward to working with our RCM partners in executing our strategy.”

NextServices, founded in 2004, provides cloud-based EHR software along with RCM services to several large and small specialty physician practices, ASCs, labs and wellness centers across the U.S. NextServices operates out of Ann Arbor, Michigan, which is where it was founded and headquartered, and Mumbai, India, which is where its 110-strong development and support team is based.

“At NextServices, we are constantly evaluating ways of adding highly differentiated value to our clients. Our certified enki EHR product, which is 100% mobile and cloud-based, was two years in the making and designed to serve as a complete EHR platform,” said Satish Malnaik, Co-Founder and CEO at NextServices. “We look forward to working closely with N-Squared to evaluate ways to partner with potential RCM providers that might be able to leverage our capabilities to better serve their clients.”

About N-Squared Growth Capital, LLC

N-Squared Growth Capital, LLC is a New York-based private investment group formed in 2011 to make highly selective, platform investments in world-class, growth-oriented, U.S.-based services businesses. N-Squared focuses on potential investment prospects throughout the U.S. and is open to investing in a variety of prudently leveraged buyout or recapitalization transactions, especially recapitalizations of founder-owned businesses. Typically, investment prospects must be generating revenue between $10 million to $200 million, and a minimum EBITDA of $2.75 million. Please visit http://www.nsquaredgc.com to learn more.

About NextServices, Inc.

NextServices, Inc., an Ann Arbor-based Healthcare Management and Technology Company, launched in 2004, delivers a comprehensive electronic health record, healthcare analytics and revenue cycle management solution to physicians, specialty medical practices, ambulatory surgery centers and labs. Through its proprietary mobile solutions, NextServices offers a mobile EHR platform accessible via web, iPad, and Android channels, enabling virtual healthcare delivery globally. Additional information is available on http://www.nextservices.com and http://www.nextservices.com/enki/

Contacts

N-Squared:
Sudeep Das
sudeep(dot)das(at)nsquaredgc(dot)com
646.509.6897

Ted Bernstein
ted(dot)bernstein(at)nsquaredgc(dot)com
203.858.0758

NextServices:
Satish Malnaik
smalnaik(at)nextservices(dot)com
734.677.7700

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