424 Capital is pleased to announce the sale of Medicus IT to San Francisco based investment firm FFL Partners. Since its initial investment in Medicus in 2017, 424 has worked closely with the Medicus IT management team to build a market leading, vertically focused Healthcare IT Managed Service Provider (MSP). FFL’s hyperspecialized, high-engagement strategy makes them an ideal next partner for a fast-growing company like Medicus.
Headquartered in Alpharetta, GA, Medicus provides HIPPA-compliant, best-in-class managed IT and cybersecurity services to more than 6,000 healthcare providers encompassing more than 50,000 end users. The business was founded by Chris Jann in 2004 to address the ongoing and daily IT issues faced by medical practices.
424 Capital successfully executed a value creation process to establish a scalable, market-leading platform. During the investment period, Medicus completed nine acquisitions primarily aimed at expanding their client base, enhancing service offerings, and increasing geographic reach. Today the company has approximately 300 employees, serving outpatient provider and community health center clients across 30+ states and 2,000+ locations.
Reflecting on the partnership, Managing Partner at 424 Capital and Chair of the Medicus Board of Directors, Brennan Mulcahey commented, “On behalf of 424 Capital and the Medicus Board of Directors we’re proud of what we helped create with Chris Jann and the entire Medicus team. We feel the business is in a great position to continue to grow and meaningfully move healthcare forward.”
“We’ve had an incredible journey with 424 Capital, and their partnership has been instrumental in helping Medicus IT grow into the leading healthcare IT services provider we are today,” said Chris Jann, Founder and CEO of Medicus IT. “Their support and strategic guidance have been invaluable. As we transition under the leadership of FFL Partners, we are excited about the future and confident that their expertise and our shared vision will drive us to new heights. The best is yet to come for Medicus IT.”
Kirkland & Ellis, LLP served as legal counsel to FFL. Baird served as the exclusive financial adviser and Whiteman Osterman & Hanna LLP as legal counsel to Medicus IT.
About Medicus IT
Medicus IT is a leading provider of HIPPA-compliant managed IT and cybersecurity services to healthcare practices across the U.S. Medicus specializes in helping healthcare organizations shift their perspective on how technology influences their daily operations and guides proactive, strategic decisions so organizations can keep pace with industry change, stay aligned, prepared, and ahead of the curve. For additional information, please visit www.medicusit.com.
About 424 Capital
424 Capital is a growth-oriented private equity firm investing in lower middle market companies within technology and tech enabled services. 424 Capital works in partnership with founders and management teams to accelerate and scale for long-term growth. Focusing primarily on investments in healthcare and energy transition, we invest in, empower, and enable companies to step up, stand out, and make a difference in the world. For more information, visit www.424capital.com.
Contacts
Medicus IT: Chris Jann (chris@medicusit.com)
424 Capital: Jenn Mosto (jmosto@424capital.com)