New York, NY, October 17, 2024 – NMS Capital (“NMS”), a leading private equity firm focused on investments within Healthcare Services and Business Services, today announced that it has exited its investment in DirectMed Imaging (“DirectMed” or the “Company”) through a sale to Frazier Healthcare Partners (“Frazier”). NMS invested in DirectMed in 2021 alongside the Company’s CEO, Brad de Koning and co-founder, Tanner LoRusso.
Based in Poway, CA, DirectMed is a leading diagnostic imaging provider of parts, component repairs and systems. With over 100,000 parts in stock across five global locations, the Company repairs, supports, and sells GE, Siemens, Philips, and Canon/Toshiba MRI, CT, and X-ray parts to healthcare networks, imaging centers, OEMs and independent service organizations (“ISOs”) around the world. DirectMed assists in helping end-users reduce equipment downtime and maintenance costs by providing an end-to-end inventory offering and strong technical expertise.
NMS’ investment in DirectMed was the result of its thematic sourcing in the medical equipment management sector, specifically with a focus on cost containment solutions for health systems, hospitals and imaging centers. NMS and DirectMed employed a multi-pronged growth strategy that focused on enhanced repair capabilities, greater depth within certain OEMs and modalities, international expansion, and infrastructure investment. NMS supported DirectMed management through the execution and integration of four strategic add-on acquisitions, technology enhancements, hiring of key executives and sales strategy development. The NMS Portfolio Optimization Group played a crucial role in DirectMed’s success.
Brad de Koning, CEO of DirectMed, said, “DirectMed’s vision of becoming the most trusted resource in aftermarket diagnostic imaging equipment was greatly accelerated when we partnered with NMS in 2021. Beyond incremental capital, NMS provided hands on support to execute upon our collective initiatives enabling us to become a differentiated platform in the sector. Our new partnership with Frazier will allow us to continue to execute on that vision.”
David Peterson, Partner at NMS, noted “We are thrilled to have had the opportunity to support DirectMed’s growth from a US-focused CT and MRI company to a multi-modality provider with global reach. We aligned early in our investment on an aggressive three-year plan and remained in lockstep on the execution of that plan from start to finish. To hit every mile marker on that roadmap and on our desired timeline is exceedingly rare. This outcome is a testament to the DirectMed team led by Brad de Koning, Tanner LoRusso, Jason Scott, Justin Hagert and Jesper Nielsen. Their collective efforts made our vision a reality. It has been an honor working with the DirectMed team and I look forward to seeing the Company’s next chapter of growth with Frazier.”
Houlihan Lokey served as exclusive financial advisor and Greenberg Traurig provided legal counsel to DirectMed and NMS. TripleTree acted as financial advisor and Goodwin Procter served as legal counsel to Frazier.
About DirectMed Imaging:
Based in Poway, CA, DirectMed is a leading aftermarket diagnostic imaging parts, systems, and service provider. With over 100,000 parts in stock, the company repairs, supports, and sells GE, Siemens, Philips, and Canon/Toshiba MRI, CT, and X-ray parts to healthcare networks, imaging centers, and independent service organizations (“ISOs”) around the world. DirectMed also owns LBN Medical, based in Aalborg, Denmark, a leading reseller of aftermarket medical imaging equipment and parts to customers around the world; and ScanMed, LLC, a leader in MRI coil design and repair.
About NMS Capital:
Founded in 2010, NMS Capital is an experienced private equity firm managing assets in excess of $1.5 billion. Since inception, NMS has partnered with management teams in over 150 investments and follow-on acquisitions across defined investment themes within the Business Services and Healthcare Services industries. The firm’s principal strategy is to create long-term value by providing strategic and operational resources to growth-oriented companies led by founders or experienced management teams. NMS has successfully built industry leading lower middle market companies in defensible and scalable end markets by accelerating organic and acquisition-driven growth.
For additional information on NMS, please visit the firm’s website at www.nms-capital.com. Follow NMS Capital on www.linkedin.com/company/nms-capital.
For further information:
David Peterson
Partner
(212) 574-7006
dpeterson@nms-capital.com