By: Casey Stanley—
Ontario Systems, a leading revenue cycle management (“RCM”) and accounts receivable management (ARM) technology and services provider, today announced it has been acquired by Arlington Capital Partners, a Washington, D.C.-based private equity firm focused on investing in regulated industries and their adjacent markets. Arlington has purchased a majority share in the Muncie-based, privately-held company, replacing a former major investor.
“Partnering with Arlington Capital was a natural step in our growth,” said Michael Wolfe, Chief Technology Officer with Ontario Systems. “They bring a great deal of experience to the table in growing software companies. That expertise will help us accelerate our existing product strategy and deepen our ongoing commitment to innovation in the cloud for our customers.”
“We’re coming off a strong 2014, which saw strong growth in our net headcount,” added Casey Stanley, Vice President of Marketing, “and we have continued hiring in 2015. Our existing strategy of investing in and around Muncie and Central Indiana remains unaltered, as we continue to focus on our people and our community. We look forward not only to our new relationship with Arlington Capital, but also continuing our existing relationships with Ball State University, Ivy Tech and other local schools as a way to find the new talent we need to grow.”
Ontario Systems recorded several of its largest customer contracts in company history this year, and remains focused on, and committed to, the healthcare and ARM markets. There are no planned changes to the organization’s existing management team, employees, or market strategy in the acquisition’s wake.
“35 years of success in the RCM and ARM industries made Ontario Systems a strong candidate for investment,” said Matt Altman, a Partner at Arlington Capital. “We’ve been drawn to the company’s management team, its people, its recurring revenue model, and its proven track record as an innovator and solution-of-choice for the most influential healthcare, ARM and business process outsourcing companies in the country. Our partnership will continue to feed the Company’s core values – stewardship, integrity, service, innovation and community involvement – as we look forward to supporting Ontario Systems through its next phase of growth.”
“The rapid evolution we’ve seen in both the healthcare and ARM industries lately has created a new set of challenges for our customers,” said Ron Fauquher, Ontario Systems co-founder and CEO. “To meet these challenges and support our customers, we will continue to pursue the most innovative product and service solutions. Our partnership with Arlington Capital will fuel that mission, and position our clients to reach new levels of success. We’re excited to see where this new relationship will take us – I’m optimistic it will bring our business to new heights, and more eyes to the city where we live and work.”
More details about the new partnership between Ontario Systems and Arlington Capital Partners will be laid out at PowerUp 2015, the Ontario Systems accounts receivable management education and training event, October 7-9 in Indianapolis. Information about PowerUp 2015 is available at http://powerup.ontariosystems.com.
Duff & Phelps acted as financial advisor to Ontario Systems in connection with its sale.
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-based private equity firm with over $1.5 billion of capital under management focused on middle market investment opportunities in growth industries including: healthcare services, aerospace/defense, government services, and outsourced business services and software. The firm’s professionals and network have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field. www.arlingtoncap.com
About Ontario Systems
Ontario Systems, LLC is a leading provider of revenue cycle management and accounts receivable management solutions for the healthcare and outsourced accounts receivable management industries. Offering a full portfolio of software, services and business process expertise, Ontario Systems customers include nine of the 10 largest accounts receivable management agencies and three of the top six best health systems in the U.S., with 55,000 representatives in more than 500 locations.
Casey Stanley is Vice President, Marketing at Ontario Systems. Ontario Systems
is a founding partner of munciejournal.com