Private equity firm makes bid for Tabula Rasa HealthCare of Moorestown
MOORESTOWN - Tabula Rasa HealthCare Inc., which made dramatic changes in a turnaround effort last year, has announced plans to be acquired by a private equity firm.
Nautic Partners Inc. of Providence is offering $570 million in a cash deal for the local firm, according to a definitive agreement.
Tabula Rasa would become a privately held firm affiliated with ExactCare Pharmacy, a business in Nautic's health-oriented portfolio.
The $10.50-per-share cash offer represents a premium of about 34 percent to Tabula Rosa's closing stock price prior to Monday's announcement.
Abrupt exit for Tabula Rasa founders Moorestown firm seeks stability after a year of upheaval
Tabula Rasa offers pharmacy services "that include personalized precision medication management and delivery," the company says. It also markets management tools for health plans and others.
Ohio-based ExactCare is a national medication management and pharmacy care provider.
Tabula Rasa jobs to stay in South Jersey
"Tabula Rasa will continue operations in all of its locations, including Moorestown," the companies said.
The deal appears to cap a turnaround effort at Tabula Rasa,
The company last year announced the abrupt departure of its founders, former chairman and CEO Calvin Knowlton and his wife, Orsula Knowlton, who was co-president and chief marketing and new business development officer.
Tabula Rasa also added new members to its board of directors and sold off business units that it said no longer fit its strategic outlook.
The company on Monday reported reported a 24 percent year-to-year increase in second quarter revenue from continuing operations of $90 million.
Its net loss from continuing operations fell to $9.7 million, from a $12.7-million deficit one year earlier.
New owner would accelerate Tabula Rasa investments
The change in ownership will accelerate Tabula Rasa's investments "in solutions that transform patient quality of life and improve the performance of our payer and provider clients," Michael Purcell, the firm's independent board chairman, said in a statement.
The purchase price includes Nautic's assumption of net debt of about $262 million.
The announcement noted Tabula Rasa's board and its largest stockholder, Indaba Capital Management L.P., are supporting the acquisition.
The deal is expected to close by year-end, pending approval from stockholders and regulators.
Under the agreement, ExactCare's executive chairman, John Figueroa, would become chairman and CEO of the combined company.
Brian Adams, Tabula Rasa's current president and CEO, would be president of the merged firm.
Jim Walsh is a senior reporter with the Courier-Post, Burlington County Times and The Daily Journal. Email him at jwalsh@cpsj.com.
This article originally appeared on Cherry Hill Courier-Post: Tabula Rasa HealthCare's turnaround attracts Nautic Partners Inc.
