FOR IMMEDIATE RELEASE
January 29, 2018
Contact: Natalie Muñoz | 202-464-6601 | NMunoz@skdknick.com
STATESERV AND HOSPICELINK MERGE TO BECOME MARKET LEADER IN TECHNOLOGY SOLUTIONS FOR END-OF-LIFE CARE
Combined Company Will Provide State-of-the-Art Management of DME for Hospice Care
January 29, 2018 – Today, StateServ Holdings (“StateServ”) and Hospicelink announced a strategic integration that will position the newly combined company as the leader for Durable Medical Equipment (DME) benefit management solutions in the hospice and post-acute care markets.
This integration unites the two market-leading DME benefit management companies in the U.S. and will build on the strengths of each company to create a single brand that addresses the clinical, financial, and operational needs of customers and partners in all 50 states. The combined business will achieve scale, enhancing capacity for innovation and speed to market for technology solutions. The combined company will be a portfolio company of Blue Wolf Capital Partners, a leading middle-market private equity fund.
Together, StateServ and Hospicelink will operate a national network of more than 1,300 DME provider locations and 21 company-owned distribution centers serving over 100,000 patients daily, further advancing the shared missions of both companies: to help families provide comfort and care for their loved ones during the end of life.
“Today’s announcement marks the beginning of a long-term strategy to expand our leadership in the core hospice market and position the combined business to add value across the post-acute continuum of care,” said Paul DiCosmo, CEO of StateServ. “This exciting partnership with Hospicelink will enable substantial investments in technology and infrastructure for the benefit of our employees, customers, and DME partners across the nation.”
“Hospicelink’s merger with its highly-regarded peer, StateServ, brings together the talented people and best-in-class processes and technologies of both companies, creating a compelling value proposition for current and future customers and our shareholders,” said Chad Trull, founder and CEO of Hospicelink. “Combining these two leading businesses, and with Blue Wolf’s powerful backing, we will draw on our decades of experience to push the boundaries of benefit management innovation, while remaining focused on delivering outstanding technology, capabilities and services to the hospice and post-acute care sectors. The integration brings tremendous growth opportunities for the dedicated workforce who make up the DNA of the success of both of our companies.”
“By bringing StateServ and Hospicelink together, we are building on the strengths of each company to create a single, leading DME company that leverages best practices to support complex solutions for end of life care,” said Jeremy Kogler, Principal at Blue Wolf. “Both companies have created market-leading technology solutions for hospice care; the new combined company will rise to meet the growing demand of our aging population.”
“The StateServ and Hospicelink integration builds upon the recent investment by Blue Wolf– both companies have valuable, long-standing relationships with their customers who rely on their innovative, quality service to ensure the well-being of their patients,” added Adam Blumenthal, Managing Partner of Blue Wolf. “The strategic combination creates an undisputed market leader for DME and benefit management platforms available today. The growth opportunities for this new combined company are enormous.”
Paul DiCosmo, StateServ’s co-founder and CEO, has been named CEO of the new combined company. Chad Trull, Hospicelink’s founder and CEO, has been named President of the new combined company. The new company will retain both current headquarters in Tempe, Arizona and Birmingham, Alabama. Together, the combined company employs hundreds of workers across the country, who will continue to be vital to the strategic growth of the company in the future.
TripleTree acted as the exclusive financial advisor to StateServ for this transaction and Ziegler Investment Bank acted as the exclusive financial advisor to Hospicelink.
Founded in 2004 and based in Tempe, AZ, StateServ is a durable medical equipment (DME) benefit management provider offering the leading technology-enabled cost containment platform for the post-acute care market. Through a national network of 1,300 DME provider locations, along with 21 company-owned warehouse facilities, StateServ offers the full spectrum of DME benefit management solutions to more than 550 hospice providers in 46 states. StateServ’s mission is to use technology and optimized processes to help its customers provide the best possible care for patients while giving them the tools they need to drive efficiency. For more information, please visit www.stateserv.com.
Hospicelink was founded in 2011 by a team of DME, hospice, and technology veterans who believed there were better ways to manage DME spend while enhancing patient care. Hospicelink has created a nationally recognized, award winning technology and service organization specifically designed to enhance and foster the unique relationship between hospice companies and DME providers. Historically, DME ordering and management was characterized by a lack of transparency and accountability between hospices and DME providers – orders were faxed or called into the DME, invoices were inaccurate and late, costs were unmanaged and difficult to control, and larger hospices were having to manage multiple DME providers across the nation. As a result, Hospicelink has the unique ability to serve as an advocate for both hospice and DME clients. Hospicelink enables a healthy, symbiotic relationship between hospices and DME providers to ensure the highest quality patient care at the best possible price. For further information on Hospicelink, please visit http://www.Hospicelink.com
About Blue Wolf Capital Partners LLC
Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.