HealthStream buys policy management software firm
The team at HealthStream has bought a Chicago-based health care technology company, continuing an acquisition run that last year saw it spend more than $130 million on four deals.
The purchase of ComplyALIGN is of a smaller scale: HealthStream is paying about $2 million in cash for the company, which markets a policy management system that helps health care organizations organize workflows, manage tickets and contracts and communicate various policies and procedures. ComplyALIGN’s subscription services are being used by more than 200 facilities, more than 150 of which are hospitals. Employees at a typical hospital, HealthStream says, need to take into account 1,000 policies or more in their daily work.
“ComplyALIGN’s products address a common, widespread pain point expressed by our health care customers,” HealthStream CEO Bobby Frist said in a statement Tuesday that called the company a “terrific addition” to his team’s lineup. “Adding ComplyALIGN to the growing HealthStream ecosystem will benefit customers and provide another, incremental step forward to fulfilling our mission of improving the quality of health care.”
Shares of HealthStream (Ticker: HSTM) rose 3.5 percent to $26 after hours Tuesday after climbing slightly during the regular session. They have risen more than 10 percent over the past six months.
Bankers Healthcare Group, the specialty lender 49 percent owned by Pinnacle Bank, has invested $10 million in a young company that markets digital banking software and in which Pinnacle put money to work last year.
Apiture was launched in 2017 as a joint venture between First Data Corp. and Live Oak Bank and now works with more than 400 financial institutions across the country. The venture has offices in Wilmington, North Carolina and Austin and in July secured a $20 million investment from investment giant T. Rowe Price and Pinnacle. The new funding from BHG will spur product development.
“We see value in aligning with companies like Apiture that prioritize innovation as much as we do and are at the forefront of their industries,” said Al Crawford, co-founder, chairman and CEO of BHG. “Our partnership will help us bolster the products we offer, while also strengthening our own digital banking capabilities.”
Pinnacle Chief Administrative Officer Hugh Queener was in the middle of the deal as a board member of both BHG and Apiture. In a statement, he lauded the Apiture team for the “smart progress” it has made in recent quarters.