Houlihan Lokey Advises Accuity Delivery Systems

Houlihan Lokey is pleased to announce that Accuity Delivery Systems (Accuity), a portfolio company of WindRose Health Investors (WindRose), has been acquired by Frazier Healthcare Partners (Frazier). Frazier is joined in the transaction by 22C Capital (22C). The transaction closed on October 26, 2020.

Founded in 2016 and headquartered in New York, Accuity is a leading provider of technology-enabled revenue integrity and clinical documentation improvement (CDI) services for hospitals and health systems. The company leverages a physician-led, pre-bill model to enhance compliance and revenue capture for its clients. Accuity’s proprietary technology empowers its physicians to quickly analyze patient records and identify incorrect or missing information that would otherwise impact a hospital’s coding accuracy and case mix index.

Founded in 2000, WindRose makes equity investments in companies that operate within the services sectors of the healthcare industry. It focus on companies with profitable business models and a demonstrated ability to deliver cost-effective solutions. WindRose manages more than $1.2 billion in investments and is currently investing out of its fifth fund. The firm is based in New York City and invests in companies throughout the United States.

Founded in 1991, Frazier is a leading middle-market private equity firm focused exclusively on healthcare. With more than $4.8 billion total capital raised, the company has invested in more than 200 companies with transaction types ranging from buyouts of profitable healthcare services companies to venture capital and company creation. Frazier has a philosophy of partnering with strong management teams while leveraging its internal operating resources and network to build exceptional companies. It has offices in Seattle and Menlo Park, California, and invests broadly across the United States, Canada, and Europe.

22C is a private investment firm committed to delivering capital and critical resources to companies operating at the intersection of technology enablement and data analytics adoption. The firm has a dedicated focus on the business services, healthcare, and financial services sectors. 22C partners with world-class management teams to build companies that are leaders in their respective markets. The firm’s operational and technology resources, including its affiliated data science organization, deliver practical, real-world support to help convert businesses’ challenges into opportunities and unlock their full potential.

This transaction represents Houlihan Lokey’s continued leadership and momentum in the healthcare technology and tech-enabled services sector, having advised on 27 transactions since 2016. The Healthcare Group is among the largest dedicated healthcare investment banking groups in the country. In 2019, the team closed 27 transactions and was ranked the No. 1 advisor for all U.S. healthcare M&A transactions by Refinitiv (formerly Thomson Reuters). Houlihan Lokey closed more than 300 M&A healthcare transactions since inception.

Houlihan Lokey served as the lead financial advisor to Accuity and assisted in initiating, structuring, and negotiating the transaction on its behalf.