SDR Ventures Advises AlphaCM on Acquisition by Mediware

SDR Ventures, a nationally recognized investment bank for privately held businesses, is pleased to announce that AlphaCM, Inc. (“AlphaCM”) has been acquired by Mediware Information Systems, Inc. (“Mediware”). SDR Ventures served as AlphaCM’s sell-side advisor throughout the transaction process.

Since 2005, North Carolina-based AlphaCM has focused technical expertise and domain knowledge on developing, implementing and supporting software solutions and services that ensure the success of mental health and intellectual/developmental disability providers and payers. AlphaCM’s products address the behavioral health sector from both sides – provider and payer. “Our dual-sided approach provides a unique opportunity to tightly integrate payers and providers. It also provides AlphaCM a unique perspective that shapes product enhancements,” said AlphaCM Chief Operating Officer David Jones. A majority of MCOs in North Carolina are currently using an AlphaCM software solution.

As AlphaCM’s exclusive sell-side advisor, SDR Ventures targeted a diverse set of buyers from both inside and outside its healthcare-technology network, ultimately narrowing to a strategic buyer in Mediware. “SDR ran a great process from start to finish. The team was able to leverage its deep sector expertise and extensive network to bring a number of investors to the table that we would not have expected to participate,” said AlphaCM Chief Executive Officer Kevin Ennis. “SDR’s expertise in healthcare technology and behavioral health won the mandate, but their execution exceeded our expectations. From our initial meetings, through marketing, negotiations, diligence and close, SDR’s strategic execution was key to a successful process and closing. The SDR team prioritized our needs and stood by our side every step of the way,” said Ennis. “We’re excited for what lies ahead for AlphaCM’s employees and clients. This transaction allows AlphaCM’s services to reach even more providers and payers nationwide.”

Since 1980, Mediware, a portfolio company of Thoma Bravo, has provided software solutions to healthcare providers and has since expanded to serve many state and federal agencies. Mediware’s solutions are ideal for high-growth, complex patient-care environments that are often underserved. The company employs more than 500 subject-matter experts who deeply understand care processes in highly specialized acute, non-acute and community-based care settings and who also have extensive experience integrating systems.

“This acquisition broadens Mediware’s solution set and subject matter expertise in the mental health, developmentally disabled and substance abuse markets. AlphaCM’s expertise is a great complement to Harmony, our existing long term services and supports business unit,” said Thomas Mann, President and CEO of Mediware. “We’re thankful that SDR Ventures presented this unique opportunity to us, and we’re excited to expand on the technology and relationships that AlphaCM has built.”

“It was a tremendous opportunity to work with AlphaCM throughout the transaction process,” said SDR Ventures Principal Chris Bouck. “Kevin Ennis and Ez Bala built and grew a truly disruptive healthcare technology solution for an underserved market, and this transaction is proof of their success. The partnership with Mediware will enable AlphaCM’s employees, stakeholders and clients to leverage the significant scale and expertise advantages that Mediware possesses. Thomas Mann and the Mediware team were diligent and thoughtful counterparts throughout the process. Mediware has a deep pool of talent and a very clear strategic plan. This acquisition will be a nice complement to the Mediware family of companies.”

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