OceanSound Partners Acquires PAR Excellence, A Leading Provider of Inventory Management Systems to the Healthcare Industry

Transaction enables company to accelerate product development and innovation to deliver enhanced value to customers

OceanSound Partners (“OceanSound”), a growth-oriented private equity firm that invests in technology and technology-enabled services companies serving government and highly-regulated enterprise end-markets, today announced the acquisition of PAR Excellence Systems Inc. (“PAR” or the “Company”), a leading provider of supply chain integrity and cost management solutions to the healthcare industry from Northlane Capital Partners (“Northlane”). Northlane and PAR’s management team will continue as investors in the Company. Financial terms of the transaction were not disclosed.

Founded in 1992, PAR enables government, non-profit, and private healthcare systems and integrated delivery networks to realize meaningful cost savings and operational efficiencies. The Company’s automated supply chain management solutions, comprised of cloud-based software, proprietary hardware products, and value-added services, allow customers to optimize medical supply inventory management to provide real-time visibility into their materials inventory and spending. Through PAR’s proprietary analytics platform, healthcare organizations save millions of dollars annually in supply and labor costs through inventory optimization, with previously manual and time-consuming tasks automated, allowing healthcare professionals to focus on patients.

“Labor and supply costs in U.S.-based healthcare systems collectively totaled approximately $1 trillion in 2023 and are steadily increasing above the annual rate of inflation. This rapid growth is unsustainable for the U.S. healthcare system and PAR’s solutions alleviate the pressures of labor and supply cost increases allowing customers to redirect their efforts and investments to the core purpose of the healthcare system – improving the quality of patient care and medical outcomes,” said Joe Benavides, Managing Partner of OceanSound. “The completion of this transaction marks the beginning of an exciting new chapter for PAR. We look forward to helping the Company further develop its mission-critical, supply chain integrity and cost management solutions while expanding its presence across the U.S. healthcare system.”

“We are thrilled to partner with OceanSound, whose expertise in government and regulated markets will be valuable to us as we continue our growth trajectory with leading healthcare systems in the government, non-profit, and private markets,” said Thad MacKrell, CEO of PAR Excellence. “The hospital inventory management market is ripe for significant digital transformation, and our team continues to serve our customers with the best products and services in the market. OceanSound’s partnership will enable us to accelerate investments in innovative products to better serve the hospital and health system market.”

“We are excited to partner with Thad and the PAR Excellence team and to leverage our resources, especially our government and regulated healthcare expertise, to accelerate growth and help to further transform the Company,” said David Stein, Principal at OceanSound. “PAR’s track record of driving innovation in the healthcare supply chain ecosystem is impressive and emblematic of the types of companies in which we seek to invest. The Company is well-positioned to sustain its rapid expansion and meet the increasing demand for digital transformation in healthcare supply chain management. We expect to help accelerate feature enhancements to PAR’s integrated product suite resulting in organic growth acceleration across the government, non-profit, and private healthcare system markets. These developments, coupled with strategic acquisitions, will enable PAR to deliver a more comprehensive, end-to-end supply chain integrity and cost management solutions.”

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Holland & Knight LLP served as legal advisors and Lincoln International LLC served as exclusive financial advisor to OceanSound. Sidley Austin LLP served as legal advisor and Guggenheim Securities LLC served as exclusive financial advisor to PAR Excellence.

About PAR Excellence

PAR Excellence is a leading, end-to-end provider of automated inventory management systems (“IMS”) solutions to the healthcare industry. Its comprehensive offerings, including cloud-based software, proprietary hardware solutions, and value-added services, enable healthcare systems to reduce costs by improving inventory management practices, decreasing medical errors, capturing labor efficiencies, and reducing administrative overhead. PAR Excellence serves many of the country’s largest and most complex government, non-profit, and private healthcare systems and integrated delivery networks (“IDNs”). PAR Excellence was founded in 1992 and is based in Cincinnati, Ohio.

About OceanSound Partners

OceanSound Partners is a New York-based private equity firm that pursues control investments in technology and technology-enabled services companies serving government and enterprise end markets. OceanSound employs a partnership approach, working closely with founders, entrepreneurs, and executives of middle market businesses to drive transformational growth. For more information, please visit www.oceansoundpartners.com.

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