Francisco Partners, a "technology-focused" private equity firm based in Menlo Park, Calif., acquired Dairyland Healthcare Solutions, a provider of information systems to community and specialty hospitals and healthcare systems last week. Terms were not disclosed.
Dairyland President and Chief Executive Officer Alan Grundei is leaving his post of seven years to "pursue other opportunities," a news release said. He has been replaced by John Trzeciak, who recently served as interim CEO of Bellevue, Wash.-based LYNX Medical Systems following it's acquisition by Francisco Partners in 2005. Previously, he co-founded Health Systems International, which 3M bought in 1990.
"Al is going to stay on for an indefinite period as an adviser to the company, to the board and to John Trzeciak," said Chad Meyer, a Dairyland spokesman, in an interview. "The rest of the management team is still in place and there are no plans for layoffs or workforce reductions."
There are also no short-term plans for altering Dairyland's business plan, which now includes more than 380 customers in 39 states.
"Our focus is the community and specialty hospital and that will remain our focus," Meyer said, but he added that long-term goals may expand beyond that niche.
A question-and-answer brochure Dairyland released states that Francisco Partners will "leverage the products, services and reputation (of Dairyland) while accelerating the process by which new products get delivered to customers." The document also states that "Francisco is an ownernot an 'operating' company."
Founded in 1980 by Steve Klick, Dairyland is headquartered in Glenwood, Minn., with regional offices in Louisville, Ky., and Lafayette, La. It had reported sales of $37.6 million in 2006 and employs some 300 people.
Francisco Partners currently manages some $5 billion in capital with investments in more than 50 technology companies with transaction values ranging from $30 million to $2 billion.