MINNEAPOLIS – August 29, 2016 – TripleTree, LLC (“TripleTree”), a strategic advisor and merchant bank serving innovative and market-leading healthcare companies, is pleased to announce that it advised Providence Service Corporation (“Providence”) in the creation of a strategic partnership with Frazier Healthcare Partners (“Frazier”) in Matrix Medical Network (“Matrix”).
Under the terms of the transaction, Frazier will own a 60% equity interest in Matrix and Providence will retain a 40% equity interest in Matrix and have representatives on Matrix’s Board of Directors. The transaction values Matrix at $537.5 million.
“The partnership with Frazier allows us to accelerate our growth strategy into a diversified healthcare services company, leveraging the proven Matrix platform as the foundation,” said Walt Cooper, CEO of Matrix. “TripleTree’s deep understanding of our business, the healthcare industry, and the firm’s long-standing relationships with all parties in the transaction were critical factors in the formation of this strategic partnership.”
According to James Lindstrom, CEO of Providence, “After recently completing its two millionth in-home health assessment visit, we are creating this partnership with Frazier to accelerate Matrix’s growth opportunities. Partnering with Frazier is an example of how Providence seeks to work with leaders in industry domains, particularly where those partners with deep industry insight, when combined with our long-term investment perspective, can provide advantages for our clients, colleagues and shareholders. For Providence, the transaction represents a validation of the investment to date and the liquidity provides further opportunity for disciplined capital deployment.”
“The strategic partnership between Providence and Frazier in Matrix is an incredible outcome, leveraging the strengths of each organization to fuel continued innovation and deliver even more value across the healthcare industry,” said Jon Hill, Senior Director at TripleTree. “Our unique team approach, combined with our investment banking and healthcare operating experience, once again helped TripleTree drive a successful outcome for our clients.”
TripleTree acted as the financial advisor to Providence for this transaction. In addition to Jon Hill, the transaction team was led by Managing Directors Justin Roth and Dave Brownlie.
TripleTree is an independent merchant bank focused on mergers and acquisitions, financial restructuring, and principal investing services. Since 1997, the firm has advised and invested in some of the most innovative, high-growth businesses in healthcare. For more, visit www.triple-tree.com.
The Providence Service Corporation is a holding company whose subsidiaries provide critical healthcare and workforce development services, comprised of non-emergency transportation services, workforce development services, legal offender rehabilitation services, health assessment services, and care management services in the United States and abroad. For more information, please visit www.prscholdings.com.
Matrix Medical Network, part of The Providence Service Corporation (NASDAQ:PRSC), provides in-home assessments and comprehensive care management services to health plan members that improve health outcomes. Using an advanced technology platform, Matrix providers visit with health plan members in their homes to obtain a deeper understanding about how to best support the members’ care needs. This information is used to ensure that provider and health plan services are best aligned with the needs of the member, resulting in better overall health outcomes. Matrix is headquartered in Scottsdale, AZ, and partners with leading health plans across the country. For more information, visit www.matrixforme.com.
Founded in 1991, Frazier Healthcare Partners is a leading provider of growth capital to healthcare companies. The firm has over $2.9 billion in committed capital under management and has made investments in over 170 healthcare companies with investment types ranging from company creation and venture capital to growth buyouts and leveraged recapitalizations. Frazier’s Growth Buyout team invests in profitable companies focusing on healthcare services, pharmaceutical services, medical products, and related sectors. Additional information about Frazier is available through its website, www.frazierhealthcare.com.