FFL Partners Completes Strategic Investment in Medicus IT, the Leading Healthcare-Focused IT Managed Service Provider
Partnership Positions Fast-Growing Healthcare IT Managed Services Provider to Pursue Next Phase of Growth
SAN FRANCISCO–(BUSINESS WIRE)–FFL Partners (“FFL”), a private equity firm focused on growth investments in Healthcare and Tech-Enabled Services businesses, today announced that it has completed an investment in Medicus IT (“Medicus” or “the Company”), the leading healthcare-focused IT managed services provider. Financial terms of the transaction were not disclosed.
Headquartered in Alpharetta, GA, Medicus provides HIPAA-compliant, best-in-class managed IT and cybersecurity services to more than 6,500 healthcare providers with more than 50,000 end users. The Company has approximately 300 employees serving outpatient provider and community health center clients across 30+ states and 2,000+ locations.
“As a growing private equity firm that solely specializes in Healthcare and Tech-Enabled Services investments, we couldn’t be more excited to partner with Medicus IT,” said Jonathon Bunt, Partner at FFL Partners. “Medicus IT understands the opportunities and challenges that come with running a healthcare practice. The Company’s differentiated managed IT, compliance, and cybersecurity offerings allow healthcare providers to deliver positive patient outcomes at scale across any EMR/EHR system those practices choose to use.”
“We are thrilled to partner with FFL during a time when healthcare organizations face significant IT challenges,” said Chris Jann, Founder and CEO of Medicus IT. “This partnership will accelerate our expansion and enhance our mCare services platform, leveraging FFL’s expertise to drive growth and innovation. Most importantly, FFL’s investment will enable us to serve more healthcare providers, allowing them to focus on what matters most – their patients.”
Medicus launched its next-generation, comprehensive managed service offering known as mCare in 2022 to serve the IT, cybersecurity and compliance needs of ambulatory outpatient care and community health centers. The Healthcare IT market is expected to grow at 15.8% annually from 2024 to 2030 according to Grand View Research. Advances in healthcare technology, the move to the cloud and increasing cybersecurity and compliance concerns are driving healthcare providers to uplevel their IT operations.
“This transaction reflects our continued ability to generate attractive investment opportunities from our Sector Exploration and Expertise Development (“SEED”) process and represents our second investment in the vertical IT Managed Services Provider space and fifth IT Services investment in the last five years,” said Cas Schneller, Managing Partner at FFL Partners. “We believe Medicus is well positioned to grow both organically and inorganically as the Company continues to expand its service offerings and geographical footprint for existing and new clients.”
Kirkland & Ellis, LLP served as legal counsel to FFL. Baird served as the exclusive financial adviser and Whiteman Osterman & Hanna LLP as legal counsel to Medicus IT. Medicus IT was previously backed by 424 Capital.
About FFL Partners
FFL Partners is a leading middle-market private equity firm that has been investing in high-quality companies since 1997. Based in San Francisco, FFL is a hyperspecialized, thematic investor focused on targeted areas within Healthcare and Tech-Enabled Services, two complementary sectors in which the firm has deep expertise and broad networks. FFL employs a proprietary sourcing and value creation strategy called the Sector Exploration and Expertise Development (“SEED”) process. The firm aims to partner with exceptional management teams and employs a high-engagement approach to accelerate growth at its businesses. FFL currently has over $6 billion of cumulative capital commitments. For additional information, please visit www.fflpartners.com
About Medicus
Medicus IT is committed to helping healthcare organizations leverage technology to optimize patient care and deliver better patient outcomes. Moving beyond traditional IT, Medicus helps its healthcare clients run their IT infrastructure, grow their operations, and transform their organizations. Headquartered in Atlanta, Georgia, with service centers in New Jersey, Ohio, Florida, Arizona, North Carolina, Medicus is one of the nation’s top Healthcare Solutions Providers (HSP), serving more than 6,500+ providers, with over 50,000+ users in over 2,000+ locations. Together, we drive healthcare forward™. For more information, please visit: https://medicusit.com.
Contacts
For FFL Partners:
Kelly Holman
Stanton
646-502-3509
KHolman@Stantonprm.com
