BIRMINGHAM, Ala.--(BUSINESS WIRE)--May 10, 2006--Source Medical Solutions, Inc., a leading provider of outpatient information management solutions, today announced that it has secured financing of $16 million through the placement of Series E Preferred Stock. The financing was led by ABS Capital Partners, a leading private equity firm focused on investing in established and profitable growth companies, with participation from existing individual investors. The investment will be used to provide capital for expansion purposes and to retire existing debt obligations. John Stobo, a general partner at ABS Capital Partners, and Mark Anderson, a principal at ABS Capital Partners, will join Source Medical's board of directors.
"Source Medical's financial results and strength have improved over the past year and we continue to make progress," said Scott Stone, executive vice president and chief financial officer of Source Medical. "ABS Capital has a proven track record in the healthcare IT sector, backing many of the industry's leaders over the past decade. We believe that this investment, coupled with their experience in high growth companies, will be valuable to us as we continue to serve our markets."
"Source Medical is a great example of the kind of growth we look for as investors," said Mark Anderson, principal at ABS Capital Partners. "The company is selling a leading solution in a fast-growing market, has a management team that has been known to us for some time and has performed well. As more and more procedures get moved to alternate sites, those providers will increasingly need sophisticated solutions to help them to manage their workflow and navigate a complex regulatory and reimbursement environment. We look forward to partnering with Source Medical to continue to capitalize on the growing demand for their offerings and build a significant company."
Source Medical's software is designed to support the core operational requirements of ASCs and rehabilitative therapy centers. It also offers the free standing diagnostic imaging center market an application service provider (ASP)-based Radiology Information System capable of interfacing with picture archiving and communication systems. Today, more than 3,300 satisfied customers rely on Source Medical for innovative applications, in-depth industry expertise and unsurpassed customer service.
About Source Medical Solutions
Source Medical provides outpatient information solutions and services for ambulatory surgery centers, rehabilitation clinics and diagnostic imaging centers nationwide. With an established track record and more than 3,300 satisfied customers, Source Medical is the trusted source for innovative applications, in-depth industry expertise and unsurpassed customer service. The company's unique, end-to-end systems improve operational efficiency and cash flow while enabling healthcare facilities to deliver a higher standard of patient care.
ABS Capital Partners
ABS Capital Partners is a private equity firm that was founded in 1990 to invest in mid- to later- stage growth companies in order to create significant, market-leading companies. The firm's investment strategy focuses on companies in the healthcare, technology, business services and media & communications sectors. ABS partners with strong management teams to help build businesses with substantial revenues, near-term profitability and solid customer bases. The firm has created long-term value for management and investors, and has $1.5 billion under management and nine investing partners within offices in Baltimore, San Francisco and Boston
Source Medical Solutions, Inc., Birmingham
Scott Stone, 205-969-4690
ABS Capital Partners
Stephanie Manuel, 410-246-5609
Source: Source Medical Solutions