TMCnet News
TripleTree Advises Matrix Medical Network in Its Sale to Providence Service CorporationMINNEAPOLIS --(Business Wire)-- TripleTree, LLC, a strategic advisor and merchant bank serving innovative and market-leading companies in healthcare, is pleased to announce that it advised Matrix Medical Network in its sale to Providence Service Corporation. Matrix is a leading provider of health risk assessments for Medicare Advantage health plans and risk bearing providers with a national footprint across 33 states. The acquisition expands Providence's clinical capabilities and home-based services with the addition of operations which include over 600 nurse practitioners. "We couldn't be more pleased to have had the opportunity to advise Matrix both in its initial recapitalization transaction with Welsh, Carson, Anderson & Stowe and now again in this sale to Providence Service Corporation. The two businesses are highly complementary and together have a tremendous market opportunity in front of them," said Scott Tudor, TripleTree Managing Director. "This transaction also reflects TripleTree's continued push into the healthcare services sector where we have established a very strong brand working with innovative and high-growth companies across a diverse range of end markets," said Justin Roth, TripleTree Managing Director. Providence acquired Matrix for an aggregate purchase price of $400 million, comprised of $360 million in cash payable at closing and 946,722 shares of Providence common stock with a value of $40 million. Matrix pioneered the use of a nationwide nurse practitioner network to bring healthcare to Medicare Advantage members where it is needed most-in the home. By delivering care in a comfortable and relaxed home setting, Matrix's nurse practitioners are able to engage, evaluate and educate patients more effectively about managing their care. These skilled clinicians can identify and help coordinate a broad range of care needs by collaborating with primary care providers, health plans and community resources. Over the last five years, Matrix has experienced exceptional growth and financial performance, generating $187 million in revenue for the twelve months ended June 30, 2014. p> "The acquisition of Matrix adds a new growth vertical for Providence that is complementary to our current business lines and leverages our core competencies, including working with government sponsored programs," said Providence CEO, Warren Rustand. "Like Providence, Matrix has developed innovative product offerings designed to reduce medical costs while improving the quality of care. This acquisition diversifies our payer base and provides industry-leading technology and a highly scalable operational infrastructure. Matrix also brings a strong management team with solid client relationships and a proven track record of delivering high-quality services. We look forward to working with them under the Providence umbrella as we build a pre-eminent healthcare services company."The existing Matrix management team will join Providence and bring their deep industry and operational experience to the Providence platform. Randy Dobbs, Matrix CEO, announced that he will transition into an advisory role after the acquisition is complete and that Walt Cooper, currently Matrix's Chief Operating Officer, will assume leadership of Matrix as Chief Executive Officer. Walt will report directly to Warren Rustand. "We couldn't be more excited about joining the Providence family," said Walt Cooper. "We have a shared commitment to improving care and outcomes while serving patients in their own homes. We also see significant growth opportunities within our core assessment business, both in adjacent markets and product offerings. Together with Providence, our combined scale and collective capabilities will allow us to deliver even greater value to patients, payers and providers."
About TripleTree
About Matrix Medical Network
About Providence Service Corporation
|
