|By Business Wire||
|September 25, 2012 08:20 AM EDT||
Babson Capital Management LLC, a global investment management firm with $149 billion in assets under management and operations on four continents, today announced it provided $10.5 million of subordinated debt and $1.1 million of equity to support the combination of Dantom Systems Inc. and PSC Info Group.
Headquartered in Wixom, Mich., Dantom is a leading provider of outsourced document management services and customized data solutions to the accounts receivable management and revenue cycle management industries, with customers across the healthcare, financial services, home services and other end markets. The newly combined company will be named RevSpring and will be a market leader with the scale and national footprint to serve a growing customer base.
Babson Capital served as the lead provider of subordinated debt on the transaction. The add-on financing follows Babson Capital’s initial investment of $16 million of subordinated debt and $2 million of equity to support Compass Investment Partners’ October 2011 acquisition of Dantom Systems.
“Babson Capital’s commitment to flexibility, certainty and speed on financings make them a value-added partner for us within the middle market,” said Justin Lipton, Managing Director at Compass Investment Partners. “We look forward to working with the team on RevSpring and other transactions going forward.”
“We are excited to be part of this truly transformative transaction, which essentially doubles the size of the company while solidifying its leadership position in its general accounts receivable management segment and expanding its presence in the revenue cycle management segment,” said Robert Shettle, Managing Director and a senior member of Babson Capital’s Mezzanine & Private Equity Group. “Our commitment to an add-on investment of this size clearly demonstrates our support for the company as well as Compass Investment Partners’ vision for RevSpring as the majority equity owner.”
About Compass Investment Partners
Compass Investment Partners is a New York-based private equity firm focused on investing in growth-oriented, middle-market companies across the Business Information and Outsourced Services markets in North America. The fund seeks to invest in proven, profitable businesses that provide their customer bases with critical information, proprietary content and value-added outsourced services. Targeted sectors for investment include: B2B information management, marketing services, business process outsourcing and knowledge services. For more information please visit: www.compasspartners.com.
About Babson Capital
Babson Capital Management LLC and its subsidiaries serve institutional investors around the globe and have $149 billion in assets under management as of June 30, 2012. Through proprietary research and analysis and a focus on investment fundamentals, we develop products and strategies that leverage our broad array of expertise in fixed income, equities, alternative, structured products, debt financing for corporations and debt and equity financing for commercial real estate. Based in Boston and Springfield, Mass., and Charlotte, N.C., with offices in New York City and Los Angeles, the firm’s subsidiaries include Babson Capital Europe Limited in London, Babson Capital Australia Pty Ltd in Sydney, Cornerstone Real Estate Advisers LLC in Hartford, Conn., and Wood Creek Capital Management, LLC in New Haven, Conn. Babson Capital is a member of the MassMutual Financial Group and is on the web at www.BabsonCapital.com.