Private Equity Firm Announces Investment in Ontario Systems, Becomes New Majority Shareholder

Ontario Systems has been acquired by another private equity firm, it was announced yesterday. Arlington Capital, which acquired its stake in the company four years ago, is being replaced as the company’s majority shareholder by New Mountain Capital. Terms of the deal were not announced.

New Mountain Capital, based in New York City, manages $20 billion of assets across a number of different sectors, the company said on its website. News of the acquisition comes at a very opportune time, as Ontario Systems is set to host its annual PowerUp conference next week in Coronado, Calif.

“This is an exciting time in Ontario’s history, and partnering with New Mountain Capital is a natural step in our progression as we continue to execute on company-wide strategic initiatives,” said Jason Harrington, President of Ontario Systems, in a statement. “The New Mountain team’s expertise in growing software businesses will be invaluable as we look to deepen our revenue cycle management (RCM) offerings and continue providing our customers market-leading solutions they have come to trust. Building on the momentum of this transaction, I look forward to working closely with New Mountain to unlock unique growth opportunities.”

Merger and acquisition activity in both the Revenue Cycle Management and Accounts Receivable Management spaces is on the rise, according to data from Corporate Advisory Solutions. As technology becomes more of a core skillset, interest from outside investors, like private equity firms, is on the rise. The release of the proposed debt collection rule from the Consumer Financial Protection Bureau is also keeping interest in the sector high.

“Ontario exemplifies New Mountain’s longstanding investment thesis of backing best-of-breed solutions providers addressing critical pain points in revenue recovery and workflow management,” said Matt Holt, Managing Director and Deputy Head of Private Equity at New Mountain Capital, in a statement. “We look forward to supporting Ontario’s continued growth by identifying both organic and inorganic initiatives to help the Company realize its full potential.”

Ron Fauquher, the Chief Executive and Co-Founder of Ontario Systems, praised its partnership with Arlington Capital.

“Our relationship with Arlington Capital Partners has been outstanding,” said Fauquher in a statement. “With Arlington’s assistance, we have successfully expanded our healthcare-market footprint, entered government markets, doubled our revenues, and expanded our reach to include more than 1,200 clients. We are proud of our progress and achievement of the goals we had previously set, and we thank Arlington for their support in helping drive our strategic growth initiatives. As we take the next evolutionary step, we look forward to New Mountain Capital’s support and partnership.”

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