Major Private Equity Firm to Invest over $17 Million in Nova Scotia Tech Company
Shareholders Approve Imperial Capital's Investment in STI Technologies Limited
HALIFAX, Sept. 25, 2013 /CNW/ - STI, the leader in intelligent reimbursement solutions for the Canadian healthcare market, is pleased to announce shareholder approval of a plan of arrangement that will result in Toronto-based private equity firm, Imperial Capital Group, investing over $17 million dollars in the company.
The transaction, which represents one of the largest investments recently made in the region, is still subject to court approval but received overwhelming shareholder approval after a special shareholders meeting that took place on Monday, September 23rd in Halifax. Many of the company's early investors, including GrowthWorks Atlantic Fund, are selling their shares and receiving an attractive return on their original investment.
"An investment of this caliber doesn't happen every day," says Milan Vrekic, Executive Director at Volta Labs. "STI is a home-grown success story and a testament to the spirit of innovation and perseverance in Atlantic Canada."
The investment in the Halifax-based company comes during a time of substantial growth and will provide the capital and strategic resources to accelerate its expansion.
"We are very excited about our partnership with STI," says Justin MacCormack, Partner, Imperial Capital. "STI is a profitable and highly scalable technology company playing an important role in the Canadian healthcare industry. As their partner, we look forward to assisting management in the execution of the company's strategic vision."
STI is the largest intelligent reimbursement card provider to the Canadian healthcare industry, implementing innovative programs on behalf of major pharmaceutical and patient assistance companies. The company's newest program, innoviCares, is one of the influential factors accelerating the 50-person company's growth. InnoviCares provides members with the choice to stay on brand name medication at the generic price and offers savings on many other healthcare products.
Existing customers of STI are also expressing their positive reaction to the news, including Jeffery Sleep, Senior Marketing Manager at AstraZeneca Canada, saying, "As a long-standing partner of STI, we see the innovative solutions and value they deliver in our health care system - empowering greater choice amongst health care professionals and patients, and ultimately improved outcomes for Canadian patients. Today's announcement is great news for health care professionals and patients. It is an opportunity to create new solutions, expand their reach and make an even greater health care impact."
"We're thrilled to have found a partner in Imperial Capital, they have a solid track record and are aligned with us on our vision. Their investment represents a win for shareholders, the company and its employees, our customers, as well as the millions of beneficiaries of our programs." says Steve Nicolle, CEO, STI Technologies Limited. "Over the next few years, we plan on further expanding our services and reach into new areas of healthcare."
STI connects physicians, patients, pharmacy and pharma with a variety of intelligent reimbursement solutions that empower choice amongst healthcare professionals and patients, ultimately improving patient outcomes. We facilitate valuable interactions between each of these four distinct groups, using our advanced patient-centric technology platform to power all of our solutions.
Founded in 1989, Imperial Capital is a Toronto-based private equity firm with a strong track record of acquiring and building entrepreneurial and family-owned businesses in the Canadian and American middle markets. Imperial Capital works with high-calibre management teams and industry-experienced CEO Partners to accelerate growth and enhance the operating performance of its portfolio companies. Imperial Capital's current investments include Schulman Associates Institutional Review Board, Inc. (pharmaceutical services), Petra Pet, Inc. (owner of Beefeaters®, Petra Vet®, and Nutri-Vet®; pet treats, consumables, and nutraceuticals), Lise Watier Cosmétiques Inc. (cosmetics, skincare, and fragrances), and Workplace Health and Cost Solutions Ltd. (employee health and other services). Imperial Capital is currently fundraising and investing from its fifth fund which has closed commitments of over $250 million and has total assets under management of over $500 million.
SOURCE STI Technologies Limited
Image with caption: "Justin MacCormack, Partner at Imperial Capital shakes hands with Steve Nicolle, CEO at STI (CNW Group/STI Technologies Limited)". Image available at: http://photos.newswire.ca/images/download/20130925_C4270_PHOTO_EN_31310.jpgFor further information:
Mary Jane Leslie
Imperial Capital Group Ltd.