TA Associates, a Boston-based private equity firm, announced that it has signed a definitive agreement to make a significant growth investment in Alpha II. As part of the transaction, Alpha II’s existing shareholder WestView Capital Partners will reinvest alongside TA Associates to maintain a minority position in the company.
Alpha II is a provider of revenue cycle management (RCM) technology solutions to healthcare providers across the care continuum.
TA Associates has invested in more than 560 companies around the world and raised more than $48.6 billion in capital since its founding in 1968. It leads buyouts and minority recapitalizations in the technology, financial services, business, healthcare and consumer industries.
As part of TA Associates’ investment, Mark Carter, Ethan Liebermann and Eric Zagorski will join the Board of Directors. The transaction is expected to close in June of 2023.
Kirkland & Ellis provided legal counsel to TA Associates. William Blair served as exclusive financial advisor and Latham & Watkins served as legal advisor for Alpha II and WestView. Financial terms of the transaction were not disclosed.
According to data captured in the LevinPro HC database, this acquisition marks the 111th eHealth transaction of 2023 and the 26th in the RCM specialty. This represents a significant drop from 2022 when there were 170 eHealth transactions and 38 RCM deals announced between January 1, 2022, and May 25, 2022. Additionally, this also marks TA Associates’ third transaction of 2023. The company invested in Synokem Pharmaceuticals in January, followed by Diatech Pharmacogenetics in April.
