Healthcare software firm Picis raises $155M, acquires Lynx Medical Systems
Picis, a privately held Wakefield, Mass., maker of healthcare-software systems, raised a whopping $155 million in a private placement of convertible preferred stock and debt to Goldman Sachs & Co. and then used a portion of the funds to acquire a similar company, Lynx Medical Systems. (The Picis release doesn’t mention the amount of the private placement, but a Picis representative confirmed it to me; it’s also described in this Boston Globe story.)
Picis, which had filed for a $86.3 million IPO last August, withdrew its offering earlier this month. In its latest filing, Picis reported a net loss of $8.5 million during the first three quarters of 2006 on sales of $52.5 million, and a total net loss of $47.9 million in the years 2003-2005. The company was founded in 1994 and has been backed by a number of venture investors, including 3i Group, Banexi Ventures Partners, Baystar Capital, Brown Brothers Harriman & Co., Camden Partners Holdings LLC, Hillman Co., IDX Systems Corp. and Permira, according to VentureWire (subscription required).
Terms of the acquisition weren’t disclosed. Picis said the combined company will offer software to automate and manage both clinical information and financial functions (such as insurance reimbursement) for hospital emergency rooms. The Lynx deal is Picis’ third acquisition. It paid $100 million for Medical Systems Management in 2002, and two years later acquired Ibex Healthcare Systems for an undisclosed sum.
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About the Author, David P. Hamilton
David Hamilton has been writing for VentureBeat LifeScience since April 2007. He formerly spent 14 years as a reporter for the Wall Street Journal in its San Francisco and Tokyo bureaus. Prior to that, he spent several years as a reporter at Science Magazine and as a reporter/researcher for the New Republic, both in Washington.