HST Pathways (“HST”) and Casetabs, two leading providers of innovative, cloud-based software for ambulatory surgery centers (“ASCs”) across the U.S., today announced a strategic combination of their businesses that will offer customers a flexible and secure set of technology solutions and enhanced products and services. The combination is supported by a majority investment led by Bain Capital Tech Opportunities with a minority investment from Nexxus Holdings. Financial terms of the private transaction were not disclosed.
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The combined company will be led by seasoned executives from both HST and Casetabs, who will leverage their in-depth understanding of the ASC industry, strong client relationships, and insight into the market to align strategic goals and maximize opportunities for growth.
With the support and resources provided by growth investors with significant experience in healthcare technology, HST and Casetabs will accelerate the pipeline of ASC information management products and services to enable streamlined service, greater capabilities, and enhanced expertise for customers. HST and Casetabs offer practice management software, physician office scheduling, care coordination, revenue cycle optimization, enterprise supply chain management, case costing, patient engagement and communication, an electronic health record system, and analytics.
“The investment structure and partnership with Casetabs opens up new growth and synergies to create additional benefits for customers,” said Tom Hui, Founder and CEO of HST. “We already share over 400 customers which will provide a strong foundation to build further success in the market place. The combined talent of both companies will broaden and deepen our ability to deliver new products and continue to be a customer-centric services organization. Together, we continue to be thought leaders in the ASC market and introduce innovations that help our customers be successful today and in the future. This investment is a reflection of our commitment and confidence in our ability to grow together with Casetabs as leaders in the health information technology space.”
In 2019, HST and Casetabs began bi-directional integration of their products. A revenue-sharing agreement was launched in January 2020, when Casetabs’ Schedule Sharing application became an integrated feature of HST’s practice management software.
“HST and Casetabs have worked closely for years, and this merger will further expand our ability to strategically serve the ASC market,” said Gavin Fabian, Founder and CEO of Casetabs. “We are committed to continuing innovation and deployment of high value products and services designed to successfully maximize business operations for our clients.”
Bain Capital has deep investment experience across the healthcare services and technology sectors, having invested in and grown a wide-range of companies including IQVIA, Waystar and Zelis.
“ASCs are well-positioned to continue their growth trend thanks to the quality, safety, and efficiency they offer patients and physicians. HST and Casetabs are primed to fuel this progress by offering a flexible SaaS-enabled platform to help ASCs scale their businesses and deliver good patient outcomes,” said Darren Abrahamson, a Managing Director of Bain Capital Tech Opportunities. “We’re excited to partner with Tom, Gavin, and their teams to drive this next phase of growth by enhancing their go-to-market capabilities, recruiting additional talent, and supporting expansion into adjacent markets.”
As the lead investor in Casetabs, Nexxus Holdings assisted management in developing and offering best-in-class scheduling and optimization tools for ASCs. “Combining the industry-leading solutions of HST and Casetabs holds the promise of becoming a game-changer for both ASCs and patients,” said Tim Babich, CEO of Nexxus Holdings
HST was recently recognized for its achievements and growth on the 2020 Inc. 5000 list, the most prestigious ranking of the nation’s fastest-growing private companies, with a growth rate of 154% percent over the past three years.
About HST Pathways
HST Pathways offers specialized software solutions to help ASC organizations achieve efficiencies with surgical scheduling, supply chain management, electronic health record clinical workflows, medical coding, insurance and patient billing, revenue cycle management, and accounts receivable collections. For more information, visit www.hstpathways.com.
More than 100 million surgeries are coordinated in the U.S. every year with fragmented chains of emails, text messages, phone calls, and faxes. Casetabs uses an intuitive central coordination hub, which delivers real-time case information and updates to facility staff, physician office staff, physicians, anesthesiologists, and vendor reps. Casetabs is based in Irvine, CA. For more information, visit www.casetabs.com.
About Bain Capital Tech Opportunities
Bain Capital Tech Opportunities (https://www.baincapitaltechopportunities.com) aims to help growing technology companies reach their full potential. We focus on companies in large, growing end markets with innovative or disruptive technology where we believe we can support transformational growth. Our dedicated, tenured team has deep experience supporting growing technology businesses—bringing together differentiated backgrounds in private and public equity investing, as well as technology operating roles. We invest behind fundamental long-term tailwinds as technology penetrates across industries, creating a large and growing number of investment opportunities. Bain Capital Tech Opportunities focuses on five priority sub-verticals: Application Software, Infrastructure & Security, Fintech & Payments, Healthcare IT and Internet & Digital Media.
About Nexxus Holdings
Nexxus Holdings, Inc (www.nexxus-holdings.com), a single family office founded by Tim Babich, is an opportunistic investment vehicle and holdings company focused on special situations and frequently investing in opportunities where technological efficiencies in their respective industries is the driving factor.