Brightree’s cloud-based software helps customers improve clinical and business performance in the post-acute care industries of home/durable medical equipment (HME/DME), home health and hospice.
Founded in 2002, Brightree initially had modest success. The founder transitioned business operations to a new management team in 2005 and in 2008 wanted to sell his portion of the business.
Battery recognized the strong growth dynamics of the $30 billion HME market and believed a focused business-management software solution, designed to address complex, industry-specific issues, would both make the industry more efficient and win out over a horizontal business-management offering that could not address the specific needs of the market. Battery partnered with the management team and acquired the founder’s shares for a majority stake in the company.
- Battery’s investment in Brightree supported organic growth in both new product development as well as increased sales resources.
- Acting as an in-house corporate-development arm, Battery helped to define the company’s acquisition strategy, research potential targets and execute six transactions.
- Battery also recruited additional executives to drive the company’s growth.
Within the first six months of Battery’s investment, Brightree closed its first acquisition–a complementary billing-services business that cost $300,000 to acquire. But it grew to drive $10 million in annual revenue for the company. In total, Battery helped Brightree complete six tuck-in acquisitions. Annual revenues grew from $8 million in 2008 to $113 million in 2016, when Brightree was acquired by publicly traded, medical-device company ResMed (NYSE: RMD) for $800 million.
Past performance is no guarantee of future performance and there can be no assurance that Battery or its portfolio companies will achieve comparable results.
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