Harris Williams & Co. Advises Webmedx, Inc. in its Sale

July 14, 2011

Harris Williams & Co., premier middle market investment bank, announces that Webmedx, Inc., a leading clinical documentation intelligence company, has been acquired by strategic buyer Nuance Communications, Inc. Harris Williams & Co. acted as the exclusive advisor to Webmedx. The transaction was executed by Cheairs Porter, Geoff Smith, and Dusty Lieb from the firm's Healthcare & Life Sciences (HCLS) Group, with assistance from Sam Hendler from the firm's Technology, Telecom & Digital Media (TTDM) Group.

The HCIT sector is experiencing increased M&A activity across both healthcare and technology segments. The sale of Webmedx to Nuance represents the third Harris Williams & Co. led HCIT transaction in the last six-months involving a strategic buyer. Other transactions include the acquisition of Gateway EDI by The TriZetto Group and the sale of InSite One, Inc. to Dell Inc.

"As hospitals seek to reduce costs and improve quality of care, the streamlined delivery of integrated clinical documentation and data has become a top priority. Harris Williams & Co. has seen robust appetite in the M&A market for companies that provide high quality data-centric solutions and services," stated Cheairs Porter, a managing director in Harris Williams & Co.'s HCLS Group.

Webmedx, a portfolio company of Ferrer Freeman & Co. (FFC), is a value-added partner to major hospital customers across the U.S. The company offers "Best in KLAS" IT-enabled documentation services, a proprietary data mining solution called QualityAnalytics™ and education and training capabilities through its subsidiary, Medical Technology Education Center (MTEC). This unique business model has positioned the company on the forefront of an industry shift towards interoperability and measurability in Electronic Health Records (EHR), a cornerstone of the majority of healthcare reform initiatives in a $16.5 billion market.

FFC is a private equity firm located in Greenwich, CT that invests exclusively in healthcare and healthcare-related companies. The firm has over $900 million under management and has decades of experience investing in, advising, acquiring and selling healthcare companies. FFC seeks to add value to its portfolio companies by bringing to bear its experience and networks.

Nuance is a leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents.