Lightyear Capital Leads Recapitalization of PracticeTek, Joining Founding Investor Greater Sum Ventures For Next Phase of Growth
New York & Knoxville, TN, December 06, 2021 – Lightyear Capital LLC ("Lightyear"), a New York-based private equity firm focused on financial services, today announced that investment funds affiliated with Lightyear led a recapitalization of PracticeTek (the "Company"), a provider of vertical software and payments solutions to the retail healthcare market. Lightyear joins Greater Sum Ventures (“GSV”), an entrepreneurial family office, in the investment. Terms of the transaction were not disclosed.
Formed in 2020, PracticeTek provides more than 16,000 dental, orthodontic, chiropractic, optometry, dermatology, and other healthcare practices with best-in-class software solutions that help them acquire, engage, and bill their patients and manage their practices to grow faster. PracticeTek’s practice management capabilities allow providers to streamline and integrate processes and to make data-driven business decisions through actionable insights.
"Our investment in PracticeTek reflects the intersection of two long-term Lightyear investment themes, growth in embedded payments and the increase in consumer directed healthcare," said Mark F. Vassallo, Managing Partner of Lightyear. "Retail healthcare practices have accelerated their adoption of digital patient engagement software solutions as a result of the pandemic, and we believe PracticeTek is well positioned to benefit from this trend moving forward."
"Through the creation of this platform, we’ve heard directly from health professionals that this collection of tech solutions is critical to the success of their practice," said Ross Croley, Founder and CEO of GSV. “With a significant addressable market and monetization opportunities through integrated payments and cross sales, PracticeTek represents an incredible growth story. We're confident that these tools help medical practitioners become entrepreneurs growing profitable businesses, and we’re pleased Lightyear has joined us to help prove out this modern health tech thesis."
"The retail healthcare market encompasses over 500,000 practices, which collect more than half their revenue from patients. This creates the need for efficient billing and patient payment solutions to ensure profitability and frictionless experience," said Michal Petrzela, Managing Director of Lightyear. “We look forward to partnering with PracticeTek and GSV in continuing the Company's growth momentum amidst the significant opportunity within the retail healthcare software and payments market."
"We are thrilled to have Lightyear join PracticeTek and GSV in our journey to digitize the retail healthcare patient experience," said Eric Leaver, Chief Executive Officer of PracticeTek. "PracticeTek's mission is to become the comprehensive software solution for retail healthcare practitioners to effectively identify, engage, and retain their customers. We look forward to partnering with Lightyear as we execute on achieving this mission through the growth opportunities ahead."
Innovative solutions within the Company’s portfolio include electronic health records, appointment scheduling, patient intake forms, communications, engagement and reputation management, and embedded payment processing. PracticeTek delivers value for healthcare providers by increasing awareness of their practice, optimizing operational efficiencies and workflows, and enhancing clinical outcomes that ultimately translates to better patient care. In addition to pursuing the Company’s organic growth strategy, PracticeTek will also seek to execute strategic acquisitions that will help expand its footprint within this highly fragmented market.
The recapitalization of PracticeTek represents Lightyear’s fifth investment within the embedded payments and consumer directed healthcare investment themes. Lightyear has realized several successful investments within these themes including HigherOne, a payments provider serving higher education institutions, Alegeus, which manages consumer-directed healthcare payments, and Therapy Brands, a software and payment solutions provider serving behavioral and mental health professionals. In addition, Lightyear has accumulated considerable expertise in building companies through mergers and acquisitions with over 100 follow-on acquisitions made through its portfolio companies since 2000.
Davis Polk & Wardwell LLP served as legal advisor to Lightyear. Greenberg Traurig, LLP served as legal advisor to GSV.
About Lightyear Capital LLC
Founded in 2000, Lightyear is a financial services-focused private equity firm based in New York. Through its affiliated private equity funds, Lightyear makes primarily control investments in North America-based, middle-market companies associated with financial services, including asset management and wealth management, banks and brokerage, commercial and consumer finance, financial technology, healthcare financial services, insurance, and tech-enabled business services. Lightyear brings focus and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. For more information, please visit www.lycap.com
About Greater Sum Ventures
Greater Sum Ventures (GSV) is an entrepreneurial family office that invests its own capital in middle market software and tech-enabled services companies. With entrepreneurial roots and proven operational and investing experience, GSV works with select independent co-investing partners to build platforms of technology companies that revolutionize the industries they serve. Headquartered in Knoxville, Tennessee, GSV provides access to capital and operational support to midmarket technology firms all over the world. To learn more, visit GreaterSumVentures.com