Novacap buys healthcare software company

Canadian private equity firm Novacap has bought Logibec, a Montreal-based company focused on healthcare software. Logibec was formerly a portfolio company of San Francisco-based GI Partners, which bought the company in 2015 from Ontario Municipal Employees Retirement System’s private equity portfolio. Details of the transaction were not disclosed, but earlier this year it was estimated that the Logibec’s EBITDA was in the C$50 million ($39 million) range and the deal returns the company to Canadian ownership. “We are grateful for the enthusiastic support of Novacap and its partners in this transaction, which not only brings our company back to Canadian ownership, but also positions us for expansion outside of North America,” said Marc Brunet, CEO of Logibec. Logibec is one of Canada’s largest healthcare technology companies and since 1982 has focused on the better delivery of patient care and to assisting healthcare managers through technology. The firm has reported breakthroughs in foreign markets in areas such as data management solutions. “Novacap has always been committed to fostering entrepreneurship and innovation right here in Quebec and Logibec has epitomized that since inception,” said Pascal Tremblay, president, CEO and managing partner at C$3.6 billion Novacap. “Novacap has a long history of successfully partnering with Canadian companies and helping them grow significantly.” Novacap led the investment alongside Investissement Québec and management in Logibec. Investissement Québec, which supports local innovation, plans to continue supporting the players and key sectors of the economy in order to spotlight know-how and grow investments and exports, said President and CEO of Investissement Québec Guy LeBlanc. "The investment that our government is making in Logibec is strategic for Québec's position in this highly competitive sector. It will enable the company to remain among the leaders in information systems for the health and social services sector. The company will thus be able to focus on developing solutions essential to the quality of care offered to patients, particularly in hospitals," said Quebec’s Minister of the Economy and Innovation Pierre Fitzgibbon. Meanwhile back at Novacap, Eric Desrosiers, senior partner at the firm, reiterated that the investor group is committed to providing all the resources Logibec needs to develop new solutions and further expand its geographic footprint. “Logibec has a long history of working in collaboration with private equity sponsors, and as their new partners, we are thrilled to support management’s growth initiatives and to contribute improving healthcare by bringing innovative solutions to the market,” Desrosiers said. Novocap is known for its active partnership and over 39 years has done numerous deals including leveraged buyouts, management buyouts, add-on acquisitions, IPOs and privatizations.

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