OMERS Private Equity has agreed to sell Logibec Inc., its healthcare IT company, to GI Partners, the two companies announced on Friday.
OMERS Private Equity is part of OMERS (Ontario Municipal Employees Retirement System), a pension fund that handles the retirement benefits of Ontarian local government workers. It has over C$57 billion of investments under management.
The deal is expected to be completed in the first quarter of 2015. OMERS Private Equity (OPE) will continue holding MatrixCare, Logibec’s US subsidiary. MatrixCare is a leading electronic health record provider of long-term care.
Lisa Melchior, Managing Director at OPE, said:
“We’re very pleased to announce another successful realization in the OPE portfolio. Our investment in Logibec is a clear demonstration of our strategy, partnering with great management teams and adding value to strong companies to generate returns for OMERS. It has been very rewarding working with Marc Brunet and the Logibec team, and we wish them continued success in the future.”
Founded in 1982, Logibec was taken private in 2010 by OPE. It has grown considerably since then, and is ranked as Canada’s leading Top Pure-Play Health Care IT company, according to the Branham 300 Industry survey. It is headquartered in Montreal.
Logibec has more than 350 workers and over 600 healthcare clients. It will continue operating under the same management team. Customer support and product development will be delivered from its current offices in Quebec, British Columbia, Manitoba and Ontario.
“I’d like to thank OMERS Private Equity for their valued partnership over the past four and a half years. Their commitment and support of Logibec has been a key contributor to the Company’s success.”
OMER’s legal counsil is Goodmans LLP and its financial advisers are National Bank Financial and Harris Williams & Co.
San Francisco-based GI Partners says it is planning to introduce new product lines, make further acquisitions to add to Logibec, and expand geographically.
GI Partners concentrates on control-oriented middle-market investments. It manages approximately $11 bilion in capital for institutional investors. The firm agreed to buy Kellermeyer Bergensons Services LLC in September, a company that provides management services to supermarkets.
Vice President of GI Partners, Dave Kreter, said,
“We have spent a significant amount of time looking for the right healthcare IT investment and have found it in Logibec. We strongly believe in the company’s recurring revenue model, providing solid downside protection for our investment, coupled with the company’s clear growth potential. We will pursue various strategic initiatives to unlock that potential, such as introducing new product lines, expanding into new geographies, and executing add-on acquisitions, in order to drive meaningful value creation for our investors.”