Netsmart completed a recapitalization with a strategic minority investment by private equity firm TA Associates, the company said. It also received an additional investment by GI Partners, an existing shareholder.
Netsmart was bought in 2016 in a joint venture with GI Partners. TA Associates and GI Partners will acquire the stake in Netsmart held by Allscripts Healthcare Solutions. The combined investor group will own around 80% of Netsmart shares. Netsmart leadership and associate shares will have a 20% stake.
GI Partners and TA have a history of making joint investments together, said Mike Valentine, CEO of Netsmart.
“We are excited that this working history will allow us to not miss a beat in executing the long-term vision for Netsmart and our clients,” Valentine said. “The confidence that GI Partners and TA Associates have shown is a testament to the leadership that Netsmart has demonstrated with the communities we serve. Our next chapter will bring even more innovations and new solutions that give our clients broader capabilities to tackle rapidly changing regulatory requirements and value-based care models.”