Minneapolis-based Ability Network Inc., a fast-growing health care technology company, is poised to receive a $550 million “strategic investment” from Boston-based equity investor Summit Partners.
The core of Ability Network’s business is a Web-based network that allows health care providers to process and track Medicare payments.
Contrary to recent speculation, the deal does not represent a sale of Ability Network. A March story in The Wall Street Journal cited unidentified sources who said that Ability Network’s venture backers were shopping the company for $500 million.
“This is a very exciting, significant step that Summit Partners is taking with us,” Ability Network CEO Mark Briggs said in a statement announcing the deal. “It confirms the course we’ve been on for the past few years, and validates the contribution to innovation and service Ability has brought to the health care industry.”
The company’s announcement characterizes the deal as a “recapitalization.”
Summit Partners has raised nearly $15 billion in capital and invested in more than 385 technology, health care, and other growth companies since its inception in 1984. But according to the announcement, the Ability deal “represents one of Summit Partners’ largest health care transactions to date.”
Ability Network has been backed by Boston-based Bain Capital and Wayzata-based Lemhi Ventures. In the wake of the investment from Summit Partners, Bain Capital remains an investor in Ability Network.
Ability Network previously raised $27.7 million in its last financing round, as detailed in an amended 2012 filing with the U.S. Securities and Exchange Commission.
Ability Network was founded as VisionShare, Inc. in 2000; the company’s name was changed to Ability Network in 2011. Ability Network’s headquarters are in the Butler Square building in downtown Minneapolis.