A Medical Device Daily
Hospital operator Tenet Healthcare (Dallas) reported that it will sell its entire interest in healthcare services company Broadlane (also Dallas) to TowerBrook Capital Partners for proceeds of about $155 million in cash.
The sale is part of a deal for TowerBrook to acquire a majority stake in Broadlane, Tenet said.
Ten percent of the proceeds will be held in escrow and distributed over about six years. Tenet said expects to record a gain on the deal, which will be substantially offset for tax purposes by existing net operating loss carryforwards. The deal is expected to close in 3Q08.
Broadlane originated as the materials management department of Tenet and later became an independent company. Broadlane's senior management team will continue to retain a significant ownership interest in the company.
Dr. Charles Saunders, Broadlane's CEO/chairman, will step down from those positions once the transaction closes and will be succeeded by David Ricker, the company's founder, president/COO.
"Over the past several years, we have successfully grown and diversified Broadlane's business from its roots as a division of Tenet Healthcare," said Saunders. "Having achieved this strategic goal, I will be stepping down upon the closing of the transaction and will be succeeded by David Ricker, who has grown from one of the company's initial founders to become our president/COO. I have full confidence in David's ability to assume the CEO role and lead Broadlane into the future."
"In looking for a new equity partner, we were attracted to TowerBrook's significant expertise in the healthcare industry," said Ricker. "The senior management team is excited to work with TowerBrook to fulfill Broadlane's tremendous growth potential."
Trevor Fetter, Tenet's president/CEO, said, "We have confidence in Broadlane and its management team, and we look forward to continuing a productive and close relationship with Broadlane under its new ownership."
In other dealmaking news, Trustmark Mutual Holding Co. (Lake Forest, Illinois) has acquired Health Contact Partners (HCP; Wheeling, Illinois), a privately held company specializing in contact and call center services to the healthcare industry. HCP will operate as a stand-alone subsidiary of Trustmark.
Details of the transaction were not disclosed.
Founded in 2001, HCP provides telephonic and live chat services, including a 24/7 nurse line, health and member advocacy, customer service, and disease management enrollment services. In addition, HCP provides online services that include a consumer health portal www.healthyliving247.com.
Deb Leon, HCP founder, will remain as president of HCP, reporting to Trustmark executive VP Chris Martin. The company said the acquisition by Trustmark will not impact HCP's current call center operations or clients.