EMSystems acquires Pennsylvania health care software firm; Dalton sells off Novo 1; Grainger acquires Green Bay distributor
EMSystems acquires Pennsylvania health care software firm
EMSystems LLC, a Milwaukee-based software and technology company that serves emergency medical, fire and police agencies, has acquired Med Media of Harrisburg, Pa.
Med Media has become a wholly owned subsidiary of EMSystems, said Andy Nunemaker, chief executive of EMSystems.
EMSystems will retain most of Med Media’s 20 employees and management team, he said.
"The complimentary product lines and strong EMS focus that Med Media brings to our combined company will drive significant advantages for our customers," Nunemaker said. "This acquisition enables EMSystems to offer a fully integrated suite of EMS and emergency preparedness solutions that spans across the emergency response and preparedness continuum."
With the acquisition, more than 15,000 health care providers in 43 states now use EMSystems’ software or technology, covering more than 75 percent of the U.S. population.
The acquisition of Med Media is EMSystems’ third in the past 18 months, Nunemaker said, and the company continues to look for other buyout opportunities.
"We’re looking for companies with complementary product lines that sell into the same space we do, so we can sell to the same distribution channels," he said.
Dalton sells off Novo 1
Renowned entrepreneur George Dalton has sold some of the key assets of Waukesha-based Novo 1 to a Michigan private equity firm and plans to sell the remaining assets of the company to other buyers soon.
Dalton confirmed last week that he has sold the inbound telephone customer service business and some other assets of Novo 1 to Glencoe Capital’s Michigan Opportunities Fund.
Dalton had co-founded Novo 1 in 2000. He told Biztimes that the company was devastated by the terrorist attacks of 9-11 in 2001, which brought the airline industry to a halt. Novo 1 had handled the customer service operations of American Airlines.
Dalton said his situation became worse shortly after 9-11, when his partner at Novo 1, Ross Housley, passed away.
"This has been a very difficult situation since 9-11. We lost $30 million of business in one day. We handled the reservations business for American Airlines. That went away. I probably back then should have said, ‘George, go home.’ The time has come. I don’t have a passion for this business," Dalton said. "I always tell people, if you have to talk yourself into getting up and going to work in the morning, don’t go. Find something else to do that you like."
With revenues of $43 million last year, Novo 1 ranked as the 25th-largest inbound services provider in the domestic United States in 2008, according to Customer Inter@ction Solutions magazine.
Birmingham, Mich.-based Glencoe Capital has acquired the Novo 1 brand name and plans to expand the company with 300 new jobs in western Michigan. Glencoe has shifted the headquarters of Novo 1 to Fort Worth, Texas.
The Novo 1 call center in Waukesha will remain open, with about 40 jobs. However, some of the 12 administrative jobs in Waukesha will be eliminated, Dalton said.
"Including me. I will be unemployed," said Dalton, who previously co-founded Brookfield-based Fiserv Inc. in 1984.
When asked if the sale of Novo 1 will result in his retirement – again – the 81-year-old Dalton laughed and said, "I don’t think so."
Dalton will be one of the featured speakers at the Tempo Waukesha Pulse luncheon later this month.
Novo 1 has more than 400 corporate clients and employs more than 1,100 customer-care specialists and specializes in the health care, service dispatch, and transportation and logistics vertical markets.
"In Novo 1, Glencoe Capital is supporting a growing business that has a solid operating platform, a management team that averages 15 years with the company, and a history of success," said Jason Duzan, managing director of Glencoe Capital’s Michigan Opportunities Fund. "Novo 1 has performed well over the past few years and is looking to expand further both geographically and operationally."
Grainger acquires Green Bay distributor
Lake Forest, Ill.-based W.W. Grainger Inc., North America’s leading broad line distributor of facilities maintenance products, has signed and closed an all cash acquisition of Green Bay-based Imperial Supplies LLC from American Capital Ltd.
Imperial is a national distributor of quality maintenance products and aftermarket components for the vehicle and fleet industry. In 2008, Imperial had sales of $67 million.
"Imperial Supplies is a leading player in the $4 billion fleet maintenance industry and we are excited to begin working together," said Mike Pulick, president of Grainger’s U.S. businesses. "In addition to the financial benefits for our shareholders, we anticipate cross selling opportunities by offering Imperial customers access to Grainger’s broad product offering and national distribution scale and Grainger customers access to the 20,000 fleet maintenance products Imperial carries."
The business will continue to operate as Imperial Supplies LLC under Grainger’s Specialty Brands business and will be led by Rob Gilson, Imperial’s chief executive officer. Gilson will report to Ralph Howard, vice president of Specialty Brands.
"We share common values that focus on serving customers with the utmost integrity," Gilson said. "Going forward, this is a big win for Imperial customers because they have our ongoing commitment to superior service combined with the scale of Grainger’s industry leading network."
Financial terms of the acquisition were not disclosed. Grainger anticipates the transaction should be accretive to earnings by 3 to 5 cents per share in 2010.