Ontario Systems announced Wednesday that the company has been acquired by Arlington Capital Partners, a Washington, D.C.-based private equity firm that has managed $1.5 billion of committed capital via three investment funds. Terms of the deal were not disclosed.
Ontario Systems, a revenue cycle management firm based in Muncie, Ind., will become the third healthcare-focused investment in Arlington’s third fund. Arlington focuses on investing in regulated industries and their adjacent markets.
"Thirty-five years of success in the RCM [revenue cycle management] and ARM [accounts receivable management] industries made Ontario Systems a strong candidate for investment," said Matt Altman, a partner at Arlington Capital. "We’ve been drawn to the company's management team, its people, its recurring revenue model and its proven track record as an innovator and solution-of-choice for the most influential healthcare, ARM and business process outsourcing companies in the country."
Ron Fauquher, Ontario Systems co-founder and CEO, said the quick evolution in both the healthcare and ARM industries has created a new set of challenges for his company's customers.
"Our partnership with Arlington Capital will fuel that mission and position our clients to reach new levels of success. We will continue to invest significantly in the RCM and ARM verticals and are committed to our current product direction. We’re excited to see where this new relationship will take us," Fauquher said.
Malcolm Little, vice president at Arlington Capital, said "stewardship, innovation, service, integrity and community involvement" have made Ontario Systems the market leader in delivering technology to optimize the revenue recovery process for its customers.
"Our goal with this investment is to build upon the company’s impressive track record to deliver even greater technology, deepen its domain expertise and continue to provide superior attention to customers and employees alike," Little said.Additional details about the deal will be laid out at PowerUp 2015, Ontario Systems' industry education and training event set for Oct. 7-9 in Indianapolis.