Accreon, one of the largest tech consultancies in Atlantic Canada, is restructuring its ownership and leadership through a leveraged management buyout involving the Boston-based private equity firm, Mansa Capital.
Fredericton-based Accreon, which specializes in information technology for the healthcare industry, issued a statement on Tuesday saying it is in the final stages of the buyout. It did not reveal the financial terms, nor say when the buyout will close.
The upshot of the restructuring is the company will now be led by a three-member management team, a smaller group than the current five-member team. The new triumvirate will comprise: Eric Demers, President of Accreon USA; Martin Ferguson, CEO of Corporate Shared Services and founding partner; and Michael Lavigne, Vice President of Business Development.
The current CEO of Global Services and Solutions Neil Russon will remain with the company through the transition, as part of a succession plan that has been in the works for some time, said company spokesperson Carey Smith.
“I have worked in tandem with Eric, Martin and Michael for many years now and recognize the tremendous contributions they have made in order for Accreon to be where it is today,” said Russon in a statement. “I trust them to take Accreon through the next stage of its growth.”
Started in 2008, Accreon provides IT systems and customized solutions across North America for healthcare provider organizations, government entities, medical device companies and electronic medical record vendors. The company has offices in Fredericton, Charlottetown, Toronto, and Boston.
Through the leverage buyout, the company will receive investment from a private equity firm that invests in growth companies in the healthcare services and healthcare technology sectors. Mansa typically invests in companies with enterprise value (total debt and equity) of up to $150 million.
The Accreon statement said the deal will accelerate the company’s growth in the U.S., and that in term will lead to more activity in Atlantic Canada, which is home to 113 of the company’s 123 employees.
“Accelerated growth in the U.S. market will have significant positive impacts on our business in Atlantic Canada,” said Smith. “That, combined with our current focus on Canada as a critical part of our business, will sustain and enhance the career opportunities for current and future Accreon employees.”
The deal is the latest sign that the landscape is changing for Atlantic Canadian tech consultancies. In the past few weeks, Deloitte, one of the Big Four global accounting firms, bought Fredericton-based tech consultancy SwiftRadius. In May, Saint John-based Ambir Solutions said it would join EY Canada (formerly Ernest & Young) as part of its business consultancy division.