High Road Capital Partners has sold Canadian medical transcription business Accentus to Nuance Communications, generating a 3.1-times gross cash-on-cash return and a 49 per cent IRR for the US lower mid-market firm’s debut fund.
The exit is the second from High Road Capital Partners Fund I, following the sale of Milwaukee Gear in February this year.
Ottawa, Ontario-based Accentus provides medical transcription, document imaging, and remote coding technology and services to hospitals and physician groups in Canada and the US.
High Road managing partner Bob Fitzsimmons said that in the three and a half years the firm owned Accentus, revenues and EBITDA increased by 400 per cent and the company completed four add-on acquisitions to build a presence in the US acute and ambulatory markets.
“With High Road’s support, we achieved significant growth in our medical transcription business in Canada while expanding into the United States,” added Accentus CEO Steve Rogers.
“Additionally, we made significant investments in our proprietary workflow management platform and in developing medical document imaging and remote coding services.
“These investments enabled us to broaden and deepen our client relationships.”
Harris Williams & Co advised the shareholders on the deal, while Jones Day and Cassels Brock & Blackwell provided legal counsel.
High Road has completed 20 deals since inception in 2007, including 18 acquisitions – eight platform investments and ten add-on acquisitions – for its $150m 2008 vintage debut fund.
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