Fortive Corporation (“Fortive”) (NYSE: FTV) announced today that it has entered into a definitive agreement with Clearlake Capital Group, L.P. to acquire Provation Software, Inc. (“Provation”), a leading provider of clinical workflow software solutions used in hospitals and ASCs, for $1.425 billion. The acquisition is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the year.
Founded in 1994, Provation delivers innovative solutions to enhance clinical productivity, care coordination, and reporting and billing accuracy in order to consistently deliver high-quality patient care. Provation currently serves more than 5,000 customers and is expected to have 2021 revenues of approximately $110 million. Provation’s comprehensive portfolio serves gastroenterology and other clinical specialties with solutions that span the entire patient procedure, from pre-op through post-op recovery and follow-up, enhancing physician efficiency and effectiveness.
James A. Lico, President and Chief Executive Officer of Fortive, stated: “We are extremely excited to announce the pending addition of Provation to the Fortive team. Provation is a best-in-class healthcare software provider, delivering safe, efficient and scalable procedure documentation and clinical decision support solutions to thousands of health systems, hospitals and ASCs. This acquisition will bring extensive software development expertise and innovation capabilities to the AHS segment, significantly accelerating our segment strategy to provide critical workflow solutions for hospitals and ASCs. Adding Provation’s software offering and broad customer coverage to existing positions at ASP and Censis will broaden our growth opportunities across the segment.”
Daniel Hamburger, CEO of Provation, stated: “For more than 25 years, Provation has been a market leader in procedure documentation software, ensuring enhanced patient outcomes during their most critical moments. Today we start an exciting new chapter and look forward to joining the Fortive team, furthering our vision to be the global leader in innovative healthcare quality and productivity. Joining Fortive will help us accelerate our expansion into new acute care specialties, while allowing us to harness the power of the Fortive Business System to better serve our healthcare customers with innovative digital offerings and industry-leading productivity solutions that clinicians can trust.”
Fortive expects to finance the acquisition with short-term debt and available cash, and estimates the acquisition will be accretive to adjusted diluted net earnings per share by greater than $0.08 in fiscal 2022.
Presentation materials are available on the Fortive Investor Relations website at www.fortive.com, under “Events/Presentations.”
Evercore served as financial advisor and Kirkland & Ellis LLP served as legal counsel to Fortive. Credit Suisse and William Blair served as financial advisor and Sidley Austin LLP served as legal counsel to Provation. Jefferies served as financial advisor to Clearlake.
About Fortive
Fortive is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets. Fortive’s strategic segments – Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions – include well-known brands with leading positions in their markets. The company’s businesses design, develop, service, manufacture, and market professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 18,000 research and development, manufacturing, sales, distribution, service and administrative employees in more than 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System. For more information please visit: www.fortive.com.
About Provation
Provation is a leading provider of healthcare software and SaaS solutions. Our purpose is to empower providers to deliver quality healthcare for all. We provide innovative solutions in clinical productivity, care coordination, quality reporting and billing. Celebrating 25 years, Provation serves thousands of hospitals, surgical facilities, anesthesia groups, and medical offices, including 43 of the top 50 U.S. hospitals for gastroenterology (GI) and GI surgery. Our comprehensive portfolio spans the entire patient procedure, from pre-op through post-op recovery and follow-up, with solutions for physician and nursing documentation (Provation® MD, Provation® Apex, MD-Reports and Provation® MultiCaregiver), patient engagement, surgical care coordination, quality reporting, and billing capture (Provation® SurgicalValet™), order set and care plan management (Provation® Order Set Advisor and Provation® Care Plans), and EHR embedded clinical documentation (Provation® Clinic Note). Provation is headquartered in Minneapolis, MN and backed by Clearlake Capital Group, L.P. For more information about our solutions, visit provationmedical.com and follow us on Twitter, Facebook and LinkedIn.
