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Great Point Leads $12 Million Growth Equity Investment in Streamline Health
Introduction
GREENWICH, CT and CINCINNATI, OH – August 16, 2012 – Streamline Health Solutions Inc. (NASDAQ: STRM), a leading provider of enterprise content management and business analytics solutions for health care organizations, completed a $12 million growth equity investment led by Great Point Partners (“GPP”) of Greenwich, CT. As part of this investment, the company issued convertible preferred stock that can be converted into common stock on a one for one basis at $3 per share, and warrants to purchase common stock. In addition, the company issued convertible notes, which, upon shareholder approval, will convert into the same series of convertible preferred stock.
“We chose Great Point Partners for their expertise and deep network in the health care information technology (HCIT) space. GPP’s expertise will be of great assistance with our growth plans going forward,” said Robert E. Watson, President and CEO of Streamline Health.
Rohan Saikia of Great Point Partners said, “As a growing, highly scalable and well-positioned, leading provider of health care information technology solutions, Streamline Health exemplifies the very type of company that Great Point Partners seeks for investment. We’re pleased to partner with Streamline Health and support their growth into new and adjacent markets.”
This transaction closed only two weeks after GPP closed another HCIT investment in Connecture, an online health insurance process automation software solution. “We have been active in both the provider-focused and managed care information technology sectors. You will see us play an active role here in the years to come,” added Brett Carlson from Great Point.
Streamline Health Solutions also announced the acquisition of New York City-based Meta Health Technology, Inc. (“Meta”) a leading provider of health information management solutions for hospitals, clinics, physician group practices and long-term care facilities across the U.S. and Canada. Meta has a pending release of a computer-assisted coding (“CAC”) solution which, combined with Streamline Health’s current offerings, will place Streamline Health at the core of addressing the complexities of the ICD-10 transition.
About Streamline Health
Streamline Health provides solutions that help hospitals and physician groups improve efficiencies and business processes across the enterprise to enhance and protect revenues. Our comprehensive suite of health information solutions include enterprise content management, business analytics, and integrated workflow systems. Our solutions offer a flexible, customizable way to optimize the clinical and financial performance of any healthcare organization. www.streamlinehealth.net.
About Meta Health Technology
Meta is a full-service provider of health information management and Clinical Documentation Improvement (CDI) solutions for hospitals, physician group practices and long-term care facilities. The company has served the healthcare industry exclusively for over 30 years. Meta’s clients range from small community hospitals to many of the largest and most prestigious medical facilities across North America. www.metahealth.com.
About Great Point Partners
Great Point Partners, based in Greenwich, CT and founded in 2003, is a leading health care investment firm with approximately $400 million of equity capital under management. The firm manages capital in public (the Biomedical Value Fund) and private (Great Point Partners I) equity funds. GPP has provided growth equity, growth recapitalization, and buyout financing to more than 100 health care companies with outstanding management teams, strong growth, and market leadership. The private equity fund invests in profitable companies across all sectors of the healthcare industry. The firm pursues a proactive and proprietary approach to sourcing investments. Reach out to Great Point at 203.971.3300. www.gppfunds.com
This document is intended solely to provide information regarding Great Point Partners’ potential financing capabilities for prospective portfolio companies.