Deal turns billing giant PSC into RevSpring: Update
Compass Investment Partners boosts outsourcing-payments arm
Adds comment from PSC founder and RevSpring chairman Joseph Greco.
Compass Investment Partners Fund LP, New York, has acquired Oaks-based outsource billing firm PSC Info Group, which duns customers for Comcast, TimeWarner, T-Mobile, the University of Pennsylvania Health System, Western Union, NCO Group, Horsham-based NextGen Healthcare, and other national clients. Compass won't say what it paid. Statement here.
The deal combines PSC, a 30-year-old company which employs around 325, mostly in the Philadelphia area, with a smaller firm Compass owns, Wixom, Mich.-based digital-document outsourcing manager Dantom Systems. The combined company is called RevSpring.
Headquarters will be at former Dantom offices in Wixom, Mich., with other operations in Oaks and at Dantom centers in New York and Ohio. Dantom boss Tim Schriner will be chief executive. PSC Info founder Joseph J. Greco, who remains part-owner, will be board chairman. In a statement Greco called the deal "highly strategic," giving both companies "scale and a national footprint."
The deal combines PSC, a 30-year-old company which employs around 325, mostly in the Philadelphia area, with a smaller firm Compass owns, Wixom, Mich.-based digital-document outsourcing manager Dantom Systems. The combined company is called RevSpring.
Headquarters will be at former Dantom offices in Wixom, Mich., with other operations in Oaks and at Dantom centers in New York and Ohio. Dantom boss Tim Schriner will be chief executive. PSC Info founder Joseph J. Greco, who remains part-owner, will be board chairman. In a statement Greco called the deal "highly strategic," giving both companies "scale and a national footprint."
NEW: "I started this business when I was a student at Methacton High School," Greco told me. "I was selling business forms to hospitals and financial institutions. In 1996 I saw that business was becoming commoditized, now that everybody had a desktop computer. I saw the opportunity to morph the business into a tech outsource provider" for customer billing and billing data. "So I created the DATAExpress service in 1996-97, which is the driver of this amazing growth we've had."
RevSpring uses billing records "to do deep-data analytics and choose which approach is most effective for billing and collections management," Greco said. Sometimes that means electronic billing; also, "we're one of the U.S. Postal Service's largest customers. We create oportunities for customers to pay."
RevSpring starts life with more than 500 employees, $500 million in yearly sales, and profits (the firm won't say how much.) Greco says Compass bought out a previous private-equity investor, Atlanta-based Roark Capital, better known as owner of Arby's, Moe's Southwest Grill, Cinnabon and Auntie Anne's.
With Compass' backing, "we want to grow organically and strategically with acquisitions," Greco added. "This is a rocket ship."