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 THE RESULT: Caymus Partners served as the exclusive advisor to Care Technologies, Inc. (“Care Tech” or the “Company”) in its sale to Lifeline Systems, Inc. (NASDAQ:LIFE) (“Lifeline Systems”), the leading provider of personal response services in the United States and Canada. Lifeline Systems acquired substantially all of the Company’s assets in an all-cash transaction that closed on October 31, 2005.
"The team from Caymus Partners performed exceptionally at all levels in completing a successful transaction for Care Tech. Their team of senior professionals worked closely with Care Tech management in approaching a broad universe of potential acquirers and then identifying the one buyer that had a shared vision for providing innovative technology and quality customer care to the senior living industry. Most importantly, Caymus Partners positioned Care Tech as a leader in the marketplace and, as a result, generated an outcome that rewarded our company for strong future growth in addition to historical performance.”
Luther T. Griffith, Chairman
Care Technologies, Inc.
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Company Description
Founded in Atlanta, Georgia in 1995, Care Tech develops, sells, and supports resident safety systems for assisted living, dementia, independent living and continuing care retirement communities, primarily in the Southeast. The Company serves over 300 senior living facilities.
Care Tech offers a full suite of customizable wireless systems that include the following configurable product lines: CommunityCare®, CommunityCare Lite™, XtraCare™ and AlertCare®. These systems provide universal monitoring, wireless call device activation and departure alert services, among other capabilities.
Client Objective
The Company had received unsolicited inquiries from a number of strategic buyers. In order to evaluate such strategic interest as well as identify other prospective buyers in their industry, Care Tech engaged Caymus Partners as their exclusive advisor. The Company had several years of strong operating history, and it was projecting substantial growth in revenue and profitability as a result of recent contracts awarded from both new and existing customers. The majority shareholder of the Company sought to maximize the Company’s valuation based on past performance and expected future results.
Challenges Overcome
Caymus Partners overcame a number of key challenges in making this transaction successful:
- Maximizing Valuation. To maximize valuation, Caymus Partners needed to negotiate a transaction that awarded the Company with maximum consideration as a result of achieving historical operating milestones and projecting increases in revenue and profitability.
- Approaching Fragmented Acquirer Universe. The Company’s core market is highly fragmented and incorporates a large number of participants that are of varying sizes and located in varying geographies. Caymus Partners was able to identify prospects across the buyer spectrum, including smaller, regional companies, large, publicly-traded consolidators, and international buyers.
- Negotiating with Large Corporate Buyer. Despite the relative size disparity between Care Tech and Lifeline Systems, Caymus Partners was able to position the Company as a key driver of growth for Lifeline Systems’ strategy within the senior living industry. In doing so, both transaction pricing and terms were optimized for the Company’s owner.
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