AdvancedMD Acquired By Francisco Partners

AdvancedMD® Software, Inc. www.advancedmd.com, the leading provider of Web-based practice management solutions for physician offices, today announced that it has been acquired by Francisco Partners, a leading technology-focused private equity firm based in San Francisco.

Salt Lake City, Utah (May 22, 2008) –

AdvancedMD® Software, Inc. www.advancedmd.com, the leading provider of Web-based practice management solutions for physician offices, today announced that it has been acquired by Francisco Partners, a leading technology-focused private equity firm based in San Francisco. The combination of AdvancedMD’s success and its opportunity for sustained growth in the physician practice management market were the foundations for Francisco Partners’ investment.

“Excellent value in products and services tailored specifically to the needs of the physician revenue management market has resulted in a solid track record of growth,” said Ezra Perlman, Partner at Francisco Partners. “We intend to leverage this success with additional resources so that AdvancedMD can accelerate its growth and solidify its leadership position.”

“Jim’s leadership during the last 4 years has been key to AdvancedMD’s success and instrumental in positioning it for the future,” said Perlman. “We are grateful for what he has done for the company, and look forward to his continued involvement on the board of directors.”

“I’m proud of AdvancedMD’s tremendous growth of over ten fold in the last 4 years,” said Jim Pack, CEO of AdvancedMD. “Among other awards, we have been recognized as an Inc.500 company, received a CODIE award for the ‘Best Healthcare Management Solution (Vertical)’ by the Software & Information Industry Association, and recognized as ‘Best in KLAS’ for overall client satisfaction by the healthcare industry’s leading rating company. I am also very proud to have had AdvancedMD recognized by Utah Business Magazine as one of Utah’s ‘Best Companies to Work for’.”

The CEO role will be assumed by John Trzeciak. Mr. Trzeciak is a healthcare advisor to Francisco Partners and comes to AdvancedMD with more than 20 years of board, operating, and advisory experience in healthcare IT. His background includes co-founding Health Systems International Inc. (HSI), the pioneering medical software company that was instrumental in developing and maintaining the Diagnoses Related Groups (DRGs) for Medicare. HSI was acquired by 3M. Recently he served as interim CEO of two other Francisco Partners portfolio companies, LYNX Medical Systems and Dairyland Healthcare Solutions.

“We are pleased with the value created by AdvancedMD and, in particular, Jim’s leadership as he built and mentored such a successful organization,” said Michael Lee, Managing Partner of Dominion Ventures and former Chairman of AdvancedMD. “I’m confident that the company, combined with the strengths of Francisco Partners, will continue to build on the great legacy of quality products and services offered to the medical healthcare market.”
About Francisco Partners

With $5 billion of capital under management, Francisco Partners is one of the world’s largest technology-focused private equity funds. The firm was founded to pursue structured investments in technology companies undergoing strategic, technological, and operational inflection points. Francisco Partners targets control investments in private companies, with transaction values ranging from $30 million to $2 billion. The principals of Francisco Partners have a proven track record, having invested in excess of $3 billion of equity capital in over 50 technology companies. For additional information, visit www.franciscopartners.com.
About AdvancedMD Software

AdvancedMD delivers a market-leading Software-as-a-Service (SaaS) medical practice management and billing platform to 13,000 providers and 270 billing service providers nationwide. Because AdvancedMD processes more than 1M claims per month for 85 specialties, the company is able to identify payer rule changes quickly and continuously adjust the software to reflect the changes, enabling successful claims performance. Customers achieve first-pass claim acceptance rates of 95 percent or better, compared to the national average of 70 percent. The company’s all-in-one solution eliminates hardware and software license purchases while customers enjoy the freedom of no long-term contracts and one all-inclusive monthly fee. This subscription includes unlimited phone and email support from a team of healthcare and billing experts, free online training, enterprise-class data center security, automated hourly offsite backups of patient data and 99.9 percent uptime. The user interface is intuitive and easy to learn, enabling employees to become proficient faster. Comprehensive HIPAA compliance exceeds the capabilities of client-server practice management software, especially in the areas of patient data protection and backup. AdvancedMD enables billing service providers with centralized management of multiple clients and virtual staff no matter where they are located across the globe. AdvancedMD clients recognize immediate improvements to their financial performance through timely and accurate claims processing with workflow efficiency. For more information, please visit www.advancedmd.com.

Source: AdvancedMD