Merger • Business Services

Aergo Solutions Acquires Citadel Outsource Group

On June 8, 2017, Aergo Solutions acquired business services company Citadel Outsource Group from Northstar Capital

Acquisition Context
  • This is Aergo Solutions’ 1st transaction in the Business Services sector.
  • This is Aergo Solutions’ 1st transaction in the United States.
  • This is Aergo Solutions’ 1st transaction in Tennessee.

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M&A Deal Summary

Date June 8, 2017
Target Citadel Outsource Group
Sector Business Services
Buyer(s) Aergo Solutions
Sellers(s) Northstar Capital
Deal Type Merger

Target Company

Citadel Outsource Group

Hendersonville, Tennessee, United States
Citadel Outsource Group is an outsourced accounts receivable collector for healthcare companies. Citadel Outsource Group is based in Hendersonville, Tennessee.
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Buyer Overview 1

Buyer

Aergo Solutions

Iselin, New Jersey, United States

Category Company
Sector Business Services
DESCRIPTION

Aergo Solutions is a provider of receivables collection for healthcare companies from third-party payers. Aergo solves revenue cycle challenges through a customized mix of services, technology, and consulting. Aergo Solutions is based in Iselin, New Jersey.


Deal Context for Buyer #
Overall 1 of 1
Sector: Business Services 1 of 1
Type: Merger 1 of 1
State: Tennessee 1 of 1
Country: United States 1 of 1
Year: 2017 1 of 1

Seller Profile 1

SELLER

Northstar Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1993
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Northstar Capital is a mezzanine finance firm that provides junior capital to middle-market companies operating in the value-added distribution, light manufacturing, business services, financial services, education, and specialty healthcare sectors. Northstar's typical investment size is $5 to $30 million in businesses generating sales of $20 to $300 million with an EBITDA of at least $3 million. Prospective companies have stable cash flows and sustainable margins. Investments typically have maturities of five to eight years. Northstar does not invest in start-ups, real estate development, natural resource exploration, or high technology companies. Northstar Capital was formed in 1993 and is based in Minneapolis, Minnesota.


Deal Context for Seller #
Overall 42 of 81
Sector: Business Services 5 of 10
Type: Merger 3 of 4
State: Tennessee 2 of 3
Country: United States 41 of 77
Year: 2017 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-27 TMI International

Pittsburgh, Pennsylvania, United States

TMI International LLC is a manufacturer and value-added distributor of industrial products, including strip doors, air doors, industrial curtains and separators, loading dock accessories, and flexible PVC products. The Company sells its products through distributors, catalog houses, and purchasing groups to a wide range of customers. Its end users include warehouses, manufacturing facilities, distribution centers, retail non-food facilities, restaurants, and food processing facilities.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-16 Alpaca Audiology

Springfield, Missouri, United States

Alpaca Audiology is an audiology negotiating network designed to protect the profession and future of Audiology. The company was formed with the belief that clinics and their respective patients would benefit from collective purchasing power. By uniting, members of Alpaca have created the ability to obtain bottom line pricing while maintaining personal and professional integrity. Alpaca Audiology was founded in 2011 and is based in Springfield, Missouri.

Buy -