CVC Capital Partners has officially announced the acquisition of a majority stake in ExamWorks, a leading provider of independent medical examinations (IMEs) and related services. This significant investment signals a strong endorsement of ExamWorks’ business model and future growth potential, with current owners Leonard Green & Partners (LGP) and GIC retaining substantial equity alongside CVC and ExamWorks’ management team. This move is poised to enhance ExamWorks’ market position and service offerings, potentially creating new opportunities within the company.
ExamWorks, headquartered in Atlanta, Georgia, plays a crucial role in the insurance and legal sectors. They offer a comprehensive suite of services including independent medical evaluations, peer reviews, bill reviews, Medicare compliance, record retrieval, and document management. These services are essential for determining the validity and extent of injuries, ensuring appropriate and cost-effective healthcare delivery across various insurance frameworks. Serving a global clientele that includes property and casualty insurers, law firms, third-party claim administrators, and government agencies across the United States, United Kingdom, Australia, and Canada, ExamWorks has established itself as a key player in the industry.
Fazle Husain, Partner and Head of U.S. Healthcare at CVC, expressed enthusiasm about the partnership, stating, “We are pleased to join LGP and GIC in supporting the exceptional team at ExamWorks, a market leader in the provision of key services.” He further highlighted the importance of ExamWorks’ role in “independent medical oversight and help[ing] the healthcare system manage costs of care and ensure compliance.” This acquisition aligns with CVC’s strategic focus on strengthening its portfolio within the healthcare sector and leveraging ExamWorks’ established market leadership.
Christopher Baldwin, a Managing Partner at CVC, also commented on the acquisition, emphasizing CVC’s prior familiarity with ExamWorks and the strong foundation already in place. “The ExamWorks team has built a leading enterprise from the ground up over the last 13 years; we are delighted to have the opportunity to back a team that was already well-known to us,” Baldwin noted. This suggests a level of confidence in ExamWorks’ existing operations and management, which is often a positive indicator for company stability and employee prospects.
From ExamWorks’ perspective, Co-CEOs Wes Campbell and Miguel Fernandez de Castro view the acquisition as a catalyst for future expansion. “We are excited about the opportunity to tap into CVC’s investment resources and deep expertise in the healthcare space as we enter into the next chapter of our growth,” they stated. This access to CVC’s resources can fuel innovation, service diversification, and potentially geographical expansion, all of which can contribute to a dynamic and evolving work environment for ExamWorks employees. The Co-CEOs further emphasized that “This transaction represents the next step in our global journey to partner with our clients to meet their ongoing and growing service requirements,” indicating a continued commitment to client satisfaction and service excellence.
John Baumer, Senior Partner at LGP, echoed this positive sentiment, calling CVC’s investment “a testament to the extraordinary platform that has been built by the ExamWorks team.” He expressed gratitude to the ExamWorks leadership and reaffirmed LGP’s continued partnership, signaling ongoing confidence in the company’s direction. Similarly, Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, highlighted their long-term partnership with ExamWorks and their anticipation for future growth in collaboration with CVC and LGP.
The transaction, expected to finalize in 2021, is subject to standard closing conditions and regulatory approvals. This acquisition positions ExamWorks for continued growth and innovation within the independent medical examination and related services industry. For professionals in the healthcare and insurance sectors, the partnership between CVC Capital and ExamWorks represents an interesting development to watch, potentially indicating future career pathways within a strengthened and expanding global organization.
