We advised Lightyear Capital and PracticeTek on the transaction to form a leading U.S. retail healthcare solutions provider

Davis Polk advised Lightyear Capital and its portfolio company PracticeTek on PracticeTek’s merger with Integrated Practice Solutions, a portfolio company of Waud Capital Partners. Davis Polk also advised Lightyear and PracticeTek on the related financing arrangements. Under the terms of the transaction, Waud retained a minority interest in the combined business. Financial terms of the transaction were not disclosed.

PracticeTek is headquartered in Knoxville, Tennessee, and provides practice management, patient engagement, integrated payments and other software solutions to the retail healthcare practice market. The PracticeTek platform helps retail healthcare practices digitally manage their business and the entire patient process, including in respect of patient acquisition, engagement, visitation, billing and payments. Integrated Practice Solutions is headquartered in San Diego, California, and delivers comprehensive practice management, integrated payments and electronic health records software solutions to healthcare practices nationwide. The combined business will retain the PracticeTek brand and become one of the nation’s largest retail healthcare solutions providers, offering innovative solutions to over 40,000 retail healthcare providers in the United States and Canada.

Lightyear Capital is a financial services-focused private equity firm based in New York. Through its affiliated funds, Lightyear typically seeks to make control investments in North American middle-market companies associated with the financial services sector, including those in healthcare financial services and tech-enabled business services. The merger with Integrated Practice Solutions represents PracticeTek’s sixth and most significant acquisition under Lightyear’s ownership. Waud Capital Partners is a private equity firm based in Chicago with a particular focus on the healthcare services and software and technology sectors in the North American market. Waud acquired its interest in Integrated Practice Solutions in 2017 and has since managed the completion of four acquisitions for the business.

The Davis Polk corporate team included partner Michael Davis and associate Greg Travers. The sponsor finance team included partners J.W. Perry and Robert F. Smith. The investment management team included partner Michael S. Hong and associate Michael Stenbring. Partner Adam Kaminsky provided executive compensation advice. Partner Ethan R. Goldman provided tax advice. The intellectual property team included associate Yana Kipnis. Partner Jesse Solomon provided antitrust and competition advice. Members of the Davis Polk team are based in the New York, Northern California and Washington DC offices.

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