PartsSource, Leading Healthcare Services Online Marketplace, to be Acquired by Bain Capital Private Equity

Investment will accelerate mission critical automation of procurement solutions and repair services within the medical equipment supply chain

PartsSource, a leading online marketplace for medical equipment maintenance parts and services, today announced the signing of a definitive agreement to be acquired by Bain Capital Private Equity. The investment will help PartsSource continue to accelerate its growth trajectory, broaden its solutions portfolio, and expand its marketplace platform. PartsSource will continue to operate under its current management team, led by President and CEO Philip Settimi, MSE M.D. Financial terms of the private purchase from current owner Great Hill Partners were not disclosed.

Based in Cleveland, Ohio, PartsSource is the leading B2B marketplace for medtech replacement parts and services, and the largest B2B online marketplace in US healthcare, transforming one of the largest industries in the world. The company provides an integrated suite of cloud software and marketplace technology tools to help hospitals efficiently source on-demand parts and services, and empowers vendors to grow their businesses. Today, PartsSource’s marketplace connects more than 3,500 hospitals, and 15,000 clinics, with more than 6,000 medtech OEMs and 2,000 medtech repair professionals across the country in a single integrated network.

“PartsSource was founded on the idea that an evidence-based, digital approach to the healthcare supply chain can unlock better healthcare delivery, lower costs, and enhance clinical outcomes. We are proud of the progress we have made to transform mission-critical healthcare operations and are excited by the opportunity to continue to expand our marketplace to serve new areas of healthcare,” said Dr. Settimi. ”We want to thank Great Hill Partners for its help supporting the business during its ownership and positioning us for success in the next stage of our growth. We are delighted to partner with Bain Capital going forward. They share our vision for building a broader B2B healthcare e-commerce platform and have an excellent track-record of building leading healthcare technology companies.”

PartsSource’s cloud solutions help hospitals increase the uptime of mission critical equipment, improve patient safety, and maximize throughput and profitability. Additionally, its PRECISION Procurement^® powered analytics technology allows hospitals to optimize spend, reduce risk and improve supply chain visibility. PartsSource’s platform also creates value for medtech OEMs and service providers to improve digital connectivity to the provider ecosystem, serve diverse providers more efficiently, increase access to leading health systems, and ensure critical business insights so providers can more safely and reliably deliver care for patients. Last year, PartsSource expanded its marketplace network from parts into on-site and off-site repair and service solutions, a marketplace that offers curated and credentialed access to over 2,000 service engineers. This solution was recently selected by the Business Intelligence Group as a 2021 BIG Innovation Award Winner.

“Phil and his team have built an exceptional business that is at the forefront of B2B marketplaces in healthcare and poised for continued rapid expansion as providers shift their purchasing toward e-commerce and away from manual processes,” said Devin O’Reilly, a Managing Director at Bain Capital Private Equity. “We believe PartsSource has clear runway for organic growth and a significant opportunity to broaden the platform and strengthen its offering to customers through strategic acquisitions, product innovation, and international expansion.”

Bain Capital Private Equity has a long history of partnering with companies to accelerate growth in the healthcare and technology sectors. The firm’s experience in healthcare and HCIT investments include Waystar, Zelis, HST Pathways, IQVIA, Kestra Medical Technologies, HCA Healthcare, Surgery Partners, Aveanna Healthcare, and Grupo Notre Dame Intermedica, among others.

“Over the course of our four-year partnership, PartsSource scaled dramatically and established itself as the clear leader in its space,” said Mark Taber, a Managing Director at Great Hill Partners. “We are proud to leave PartsSource well-positioned to thrive in the next chapter of its growth, and we wish Phil and the entire team success as they continue to grow and drive value for customers.”

The transaction is expected to close during the third quarter of 2021 and is subject to customary closing conditions, including requisite regulatory approvals. Debt financing for the transaction is being led by Blue Owl Capital.

Robert W. Baird & Co. is acting as the financial advisor, and Goodwin Procter is serving as legal counsel to PartsSource. TripleTree, LLC is serving as financial advisor, and Kirkland and Ellis LLP as legal counsel to Bain Capital Private Equity.

About PartsSource

PartsSource’s proprietary procurement platform eliminates friction from the healthcare supply chain by delivering evidence-based decision support for healthcare technology management (HTM). Through an integrated suite of cloud software and marketplace technology tools, PartsSource empowers HTM teams to make data-driven decisions, manage long-tail spend, increase equipment uptime and track the quality of clinical assets.

For more information, visit PartsSource.com.

About Bain Capital Private Equity

Bain Capital Private Equity (https://www.baincapital.com/) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity's global team of more than 250 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 22 offices on four continents. The firm has made primary or add-on investments in more than 1,000 companies since its inception. In addition to private equity, Bain Capital invests across asset classes including credit, public equity, venture capital and real estate, managing approximately $130 billion in total and leveraging the firm's shared platform to capture opportunities in strategic areas of focus.

For more information, visit: www.baincapital.com.

About Great Hill Partners:

Great Hill Partners is a Boston-based private equity firm targeting investments of $25 million to $500 million in high-growth companies across the consumer, digital infrastructure, financial technology, healthcare, and software sectors. Over the past two decades, Great Hill has raised nearly $8 billion of commitments and invested in more than 85 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. For more information please visit www.greathillpartners.com.

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