OceanSound Partners has acquired PAR Excellence from Northlane Capital Partners

PAR Excellence Systems

Founded in 1992, PAR Excellence Systems enables healthcare systems and integrated delivery networks to realize meaningful cost savings and operational efficiencies. The company’s automated supply chain management solutions allow customers to optimize medical supply inventory management to provide real-time visibility into its materials inventory and spending. Through PAR Excellence’s proprietary analytics platform, healthcare organizations save millions of dollars annually in supply and labor costs through inventory optimization, with previously manual and time-consuming tasks automated, allowing healthcare professionals to focus on patients. For more information, please visit www.parexcellence.com.

The Deal

OceanSound Partners, a growth-oriented private equity firm that invests in technology and technology-enabled services companies serving government and highly regulated enterprise end-markets, announced the acquisition of PAR Excellence, a leading provider of supply chain integrity and cost management solutions to the healthcare industry from Northlane Capital Partners. Northlane and PAR Excellence’s management team will continue as investors in the company.

“Labor and supply costs in U.S.-based healthcare systems collectively totaled approximately $1 trillion in 2023 and are steadily increasing more than the annual rate of inflation. This rapid growth is unsustainable for the U.S. healthcare system and PAR Excellence’s solutions alleviate the pressures of labor and supply cost increases allowing customers to redirect their efforts and investments to the core purpose of the healthcare system – improving the quality of patient care and medical outcomes,” said Joe Benavides, Managing Partner at OceanSound. “The completion of this transaction marks the beginning of an exciting new chapter for PAR Excellence. We look forward to helping the company further develop its mission-critical, supply chain integrity and cost management solutions while expanding its presence across the U.S. healthcare system.”

“We are excited to partner with the PAR Excellence team and to leverage our resources, especially our government and regulated healthcare expertise, to accelerate growth and help to further transform the company,” said David Stein, Principal at OceanSound. “PAR Excellence’s track record of driving innovation in the healthcare supply chain ecosystem is impressive and emblematic of the types of companies in which we seek to invest. The company is well-positioned to sustain its rapid expansion and meet the increasing demand for digital transformation in healthcare supply chain management. We expect to help accelerate feature enhancements to PAR Excellence’s integrated product suite resulting in organic growth acceleration across the government, non-profit and private healthcare system markets. These developments, coupled with strategic acquisitions, will enable PAR Excellence to deliver a more comprehensive, end-to-end supply chain integrity and cost management solutions.” Lincoln International served as the exclusive financial advisor and Paul, Weiss, Rifkind, Wharton and Garrison LLP and Holland and Knight LLP served as legal advisors to OceanSound.

Our Perspective

Michael Siano, Managing Director at Lincoln International who led the transaction, commented, “We appreciate the opportunity to have advised OceanSound on its new partnership with PAR Excellence. PAR Excellence’s leading end-to-end service offering and proprietary technology creates meaningful savings and operational efficiencies for hospitals and health systems. We enjoyed working with OceanSound and look forward to seeing the continued growth and success of PAR Excellence.”

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