A prominent B2B marketplace that specializes in connecting buyers and sellers of medical equipment is under new ownership.
PartsSource, which says it has an inventory of more than four million products on its marketplace ranging from batteries, beds, tables, cables, infusion pumps, monitors, sterilizers to other medical and surgical products, has agreed to be acquired by Bain Capital Private Equity.
Bain is purchasing PartsSource from Great Hill Partners for an undisclosed price. “PartsSource has clear runway for organic growth and a significant opportunity to broaden the platform and strengthen its offering to customers through strategic acquisitions, product innovation, and international expansion,” says Bain Capital Private Equity Managing Director Devin O’Reilly. PartsSource will continue to be operated by its current management led by president and CEO Philip Settimi.
Bain is acquiring PartsSource primarily because of the size of the durable medical equipment industry, which last year generated total sales of about $52 billion and is growing at a compound annual growth rate (CAGR) of about 6%, according to Grandview Research.
PartsSource, which operates its ecommerce site at PartsSource.com, already has a sizable presence in the market. The B2B marketplace says it currently connects more than 3,500 hospitals, and 15,000 clinics with more than 6,000 medical technology product manufacturers and 2,000 medical technology repair workers and contractors. PartsSource has “built an exceptional business that is at the forefront of B2B marketplaces in healthcare and poised for continued rapid expansion as providers shift their purchasing toward e-commerce and away from manual processes,” O’Reilly says.
In recent years, PartsSource—which says it has 85,000 registered users on its product procurements platform and processes nearly 90% of all orders electronically—has been diversifying its services.
For example, in October PartsSource launched a services program that includes same-day or next-day repair and preventive maintenance for imaging equipment, such as X-Ray and CT scan machines, and biomedical products such as patient-monitoring and respiratory equipment. It also provides access to ongoing technical support for large equipment installation projects.
More recently, in May, PartsSource added more than one million maintenance, repair, and operations (MRO) products for clinical engineering and facilities management facilities and professionals. “Healthcare is undergoing a necessary digital transformation of its supply chain with the express goal to improve asset uptime and clinical availability as facilities management and clinical engineering maintenance is becoming increasingly mission-critical,” Settimi says. “Our clients are now able to speed the availability of their product or service to improve the cost, quality, reliability and productivity of their supply chain.”
The acquisition by Bain is expected to be complete sometime in the next three months, PartsSource says.
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