US buyout firm TA Associates has completed its third deal in a matter of weeks, paying $175 million for disease management company Alere Medical.
TA is backing the existing management in the deal, which follows its recent acquisitions of Jupiter Asset Management, a UK fund manager, and K2 Advisors, a US fund of hedge funds.
Alere helps healthcare providers monitor and manage patients with chronic illnesses like asthma, diabetes and coronary heart disease, with the aim of improving treatment success rates, reducing costs and freeing up hospital beds. There are currently about 84,000 people on the scheme in the US.
Ronald Geraty, president and chief executive of Alere, said TA’s long track record in the healthcare sector made it an excellent partner. It has invested in a number of businesses in the sector, including Coventry Health Care, Logistics Health and OneCall Medical.
TA is looking to tap into a growing market – the disease management industry is growing at 18 percent per year, according to a Boston Consulting Group study, and could be worth $1.9 billion in revenue by 2008. The study added that only about one in five healthcare payers currently had disease management programmes in place.
Richard Tadler, a managing director at TA Associates who will join Alere’s board, said: “With healthcare costs rising, the disease management industry growing and the current market under-penetrated, Alere should continue an attractive growth trajectory.” Further opportunities existed in employer healthcare programmes and the treatment of new diseases, he added.