Spotlight


Brightree


Brightree: Fueling Growth Through Accretive Acquisitions
Sector: Application Software
Stages: Private Equity • Venture + Growth
Location: Atlanta, GA
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Situation

  • Founder had transitioned operations of business to new management team and wanted to sell his portion of the business
  • Battery acquired the founder shares for a majority stake in the company

The Battery Difference

  • Supported organic growth with investment in new product development and sales resources
  • Recruited additional management to drive company growth, including six key executives
  • Acted as in-house corporate-development arm:  helped define acquisition strategy, research targets and execute transactions. Executed six “tuck-in” acquisitions.

Results

  • Strong organic growth of 50%
  • Closed first acquisition within first six months of Battery investment:  bought a complementary billing services business.
  • Acquired two legacy software competitors for <5X EBITDA;  successfully transitioned the customer bases over to the Brightree platform at a higher revenue per customer
  • Grew annual revenue from approximately $8 million in 2008 to $113 million in 2015, and EBITDA to roughly $43 million
  • In February 2016, Brightree announced it would be acquired by publicly traded, medical-device company ResMed (NYSE: RMD) for $800 million in cash. Close is expected in Q2 2016.