|By Business Wire||
|October 16, 2013 08:04 AM EDT||
Francisco Partners, a leading technology-focused private equity firm, today announced it has signed a definitive agreement to acquire McKesson Automation, a unit of McKesson Corporation that offers integrated pharmacy automation solutions for hospitals and health systems. McKesson Corporation previously announced its intent to divest this division, which will operate under a new name after the transaction closes. The transaction is expected to close this quarter and is subject to customary closing conditions.
“McKesson Automation is highly regarded in the healthcare industry for its system-wide approach to and deep understanding of the medication delivery process,” said Chris Adams, a principal at Francisco Partners. “We are excited to work closely with the existing leadership team to expand the automation business as a standalone company. We will maintain a close working relationship with McKesson Corporation to ensure that the companies’ collective solutions for hospitals and healthcare providers are complementary and effective.”
“Hospitals today face tremendous challenges – from intensifying payment and cost pressures to evolving regulatory standards, changing demographics, and quality of care measures,” said Kraig McEwen, president of McKesson Automation. “At McKesson Automation, we are developing technology solutions that help hospitals and health systems effectively manage these changes while improving patient care and outcomes. As a standalone company and with the financial and operational resources that Francisco Partners offers, we will have the ability to further our commitment to continuously advance medication delivery.”
Located in Pittsburgh, McKesson Automation helps hospitals and health systems streamline the delivery of medications – from the distribution source to the patient – shifting focus from manual, time-consuming tasks to patient care activities that impact outcomes and reduce costs. The business offers a range of products addressing every stage of medication delivery within a hospital, including pharmacy, nursing and surgical services.
Francisco Partners was advised by Robert W. Baird and Kirkland & Ellis LLP. Financial terms of the transaction were not disclosed.
About Francisco Partners
Francisco Partners is a global private equity firm that specializes in investments in technology companies. Since its launch over a decade ago, FP has raised approximately $7 billion and invested in more than 100 technology companies, making it one of the most active investors in the industry. The firm invests in transaction values ranging from $50 million to over $2 billion, where the firm's deep sub-sector knowledge and operational expertise can help a company realize its full potential. For further information, please visit: www.franciscopartners.com.
About McKesson Automation
McKesson Automation is committed to continuously advancing medication delivery, offering integrated pharmacy automation solutions that help hospitals and health systems to support improved patient outcomes, build stronger businesses and manage ongoing change.