Private equity firm Grant Hill Partners has acquired Aurora, Ohio-based PartsSource, a leading provider of medical parts and supplies procurement solutions. The acquisition will allow the company to accelerate its sales and marketing investments and further execute on its growth plan, according to company officials.
“PartsSource’s e-commerce technology has disrupted a workflow that has historically been offline, allowing providers to maintain their facilities efficiently and more cost effectively,” said Mark Taber, a Managing Partner of Great Hill. “We are delighted to partner with Phil Settimi and the entire PartsSource team to help them continue to expand their market leadership.”
Founded in 2001, PartsSource’s core electronic spend management platform automates the procurement process of medical parts and supplies from product sourcing to financial settlement, incorporating proprietary analytics to optimize compliance, efficiency, cost and quality. In addition to automating the highly complex workflow associated with procurement, the company created and maintains the industry’s only online, fully integrated parts procurement marketplace.
“PartsSource has experienced rapid growth in recent years and has emerged as the leader in the medical supplies procurement space, empowering our customers to drive costs out of the healthcare delivery system while improving outcomes,” says Phil Settimi, MD, CEO of PartsSource.
Rafael Cofiño, a partner with Great Hill Partners, adds: “We believe PartsSource has tremendous growth potential as procurement teams within healthcare seek ways to digitize their workflows via a one-stop-shop for medical parts and supplies. It has been exciting to watch them build the online category leader.”
PartSource founder and executive chairman Ray Dalton also spoke out about the acquisition, commenting: “I am proud of the team that has contributed to PartsSource’s emergence as the leading procurement solution for the healthcare industry and believe we have found the right partner in Great Hill to build on its accomplishments to date.”
PartsSource will join Great Hill Partners’ portfolio of healthcare companies including Qualifacts, RxBenefits, PlanSource, Passport Health Communications (acquired by Experian), SterilMed (acquired by Johnson & Johnson) and bSwift (acquired by Aetna).