Arsenal Capital Partners, a New York-based private equity firm, announced it has signed a definitive agreement to acquire Knowtion Health. Sunstone Partners, the current majority owner of Knowtion, will maintain a significant strategic co-investment in the company.
Knowtion Health (formerly known as RSource Healthcare) is a Boca Raton, Florida-based provider of revenue cycle management (RCM) services to hospitals and health systems. The company leverages AI-driven technology and deep domain expertise to reduce denials and underpayments across all denial types, low balance accounts and complex claims, while also enhancing patient experience and satisfaction.
Arsenal Capital Partners specializes in investments in healthcare and industrial growth companies. Since its inception in 2000, Arsenal has raised institutional equity investment funds of more than $10 billion, has completed more than 250 platform and add-on investments and achieved more than 30 realizations.
William Blair acted as the exclusive financial advisor and Choate Hall & Steward LLP served as legal advisor to Sunstone and Knowtion for this transaction. Robert W. Baird and Raymond James acted as exclusive financial advisors and Sidley Austin LLP served as legal advisor to Arsenal Capital Partners. The terms of the transaction were not disclosed.
According to data captured in the LevinPro HC database, this acquisition represents the 159th eHealth transaction of the year, and the 23rd in the RCM specialty. There were 55 RCM deals announced during 2023, and 68 announced during 2022. Additionally, this marks Arsenal Capital Partners’ second transaction of the year. The company previously acquired divested enanling services assets from Fortrea, a contract research organization.
