Private equity firm MTS Health Investors, New York, completed the sale of disease-management vendor Alere Medical to TA Associates, Boston, for $175 million. Alere, based in Reno, Nev., manages high-cost, chronic diseases, such as congestive heart failure, coronary artery disease, respiratory disease and diabetes, under contacts with health insurers and government programs.
Aleres services cover more than 20 million commercial members and 2 million Medicare beneficiaries in 47 states; it has about 84,000 active enrollees in its programs. It posted a growth rate of more than 300% the prior three years, with 2005 revenue of $45.5 million. Figures for 2006 were not available.
With healthcare costs rising, the disease-management industry growing and the current market (for such services) underpenetrated, Alere should continue an attractive growth trajectory, said Richard Tadler, a managing director at TA Associates who will join Aleres board of directors, in a news release. MTS and TA Associates are both private-equity firms specializing in the healthcare industry. -- by Laura B. Benko