SpendMend, a cost recovery and spend visibility services to healthcare clients nationwide, acquired Contract Management Strategies (CMS), an Irvine, California-based provider of audit recovery and professional services.
The amount of the deal was not disclosed.
Founded in 2002 by Clayton Hale, President, and CEO, CMS provides audit recovery and professional services for its clients with specialization in Accounts Payable Audit Recovery, Sales & Use Tax Consulting and Audit Recovery, Pharmacy Audit Recovery & Price Reduction, Medical Device Audit Recovery and Tracking.
The acquisition will enable SpendMend to advance its position in the audit recovery market and accelerate its growth plan to offer a broader suite of cost optimization solutions to its customers into the areas of tax, medical device and pharmacy.
Led by Dan Geelhoed, CEO, SpendMend leverages data, technology and analytics to identify gaps in processes that cause financial “leakage” for organizations. Once identified, the company utilizes this information to actively recover excess spend for its customers and also provides benchmarking, analytics and actionable insights.
SpendMend is a portfolio company of Sheridan Capital Partners, a Chicago-based private equity firm founded in 2012. SCP focuses on lower middle market buyouts and growth equity investments across the consumer health sector in the U.S. and Canada with enterprise values from $25 million to $150 million.