Houlihan Lokey Advises Probo Medical

Houlihan Lokey is pleased to announce that Probo Medical, LLC (Probo), a portfolio company of Varsity Healthcare Partners (VHP), has been acquired by Avista Capital Partners (Avista). The transaction closed on March 8, 2022.

Based in Fishers, Indiana, Probo Medical was founded in 2014 with a mission to increase access to healthcare services for patients worldwide by providing affordable, quality ultrasound probes and repair. Probo is a leading innovator in the global medical imaging market, offering vertically integrated, mutually reinforced services for ultrasound, MRI, CT, PET, X-ray, C-arm, and mammography machines and other global imaging equipment needs. Probo’s unique mix of industry-leading equipment procurement, sales, repair services, refurbishment capabilities, temporary equipment solutions, and supply chain management enables providers and health systems to (i) save costs through more efficient capital spending and (ii) extend the useful life of their medical equipment while (iii) expanding the imaging equipment addressable market by lowering the barrier to purchase. Through its proprietary expertise, data capabilities, and leading equipment procurement process, which results in best-in-class margins, Probo has built an industry-leading platform as the go-to partner globally for all things imaging, poised to achieve rapid growth and scale.

Probo grew quickly from a small Indiana business in 2014 into a global company with more than 14 locations worldwide. Today, Probo Medical is the largest ultrasound equipment distributor in the world.

VHP was founded in 2012 and is a lower middle-market private equity investment firm focused on partnering with founders, entrepreneurs, and management teams to build leading healthcare services companies. VHP has been successful in developing and executing a tailored value creation plan, in partnership with the leadership of each company, that typically emphasizes an appropriate investment in infrastructure followed by an aggressive organic and acquisition growth strategy. VHP draws upon its extensive healthcare industry experience and relationships, as well as its hands-on partnership approach, to effectively drive growth and maximize value. VHP is currently investing out of its $424 million third fund. The firm is based in Los Angeles with an additional office in Stamford, Connecticut.

Founded in 2005, Avista Capital is a leading New York–based private equity firm with nearly $8 billion invested in more than 40 growth-oriented healthcare businesses globally. Avista’s leadership team has invested together for over two decades in the healthcare sector. Avista partners with businesses that feature strong management teams, stable cash flows, and robust growth prospects—targeting product and technology businesses with clear scale potential across six subsectors experiencing strong tailwinds. The team is supported by a group of seasoned strategic executives enhancing the entire investment process through strategic insight, operational oversight, and senior counsel, which helps drive growth and performance while fostering sustainable businesses and creating long-term value for all stakeholders.

This transaction represents Houlihan Lokey’s continued dedication and focus in the medical outsourcing sector. Houlihan Lokey’s Healthcare Group is among the largest dedicated healthcare investment banking groups in the world. In 2021, the group closed 43 transactions and was ranked the No. 1 M&A advisor for global healthcare transactions under $1 billion by Refinitiv.* Houlihan Lokey’s Healthcare Group has closed more than 350 M&A healthcare transactions since its inception.

Houlihan Lokey served as financial advisor to Probo Medical and Varsity Healthcare Partners, who first invested in the company in 2018.

*Excludes accounting firms and brokers.