CLSA partially exits Japan medical IT provider
CLSA Capital Partners (CLSA CP) has partially exited its position in NHOSA Corporation, a Japanese IT provider for dental clinics and medical institutions.
The private equity firm acquired an 85% stake in the company in 2018 for about JPY8 billion ($76.4 million) via its Sunrise Capital III fund, which closed at $400 million the prior year. NHOSA management held the remaining 15%. Sunrise III continues to retain a majority stake, and there will be no material changes to NHOSA’s management team, company name and business operations.
The buyer is EM Systems, a Tokyo-listed IT provider for pharmacies, clinics, and nursing care businesses. It is the leading player of its kind in the pharmacies category. CLSA CP believes that partnering with EM Systems will contribute to the further growth of NHOSA. Sunrise III intends to strengthen the relationship between NHOSA and EM Systems going forward.
Founded in 1979, NHOSA develops, distributes, and maintains medical information processing systems, including electronic health record (EHR) platforms for various healthcare facilities, especially dentists. Its flagship EHR product - Wise Staff 9 Plus - claims to optimize operational efficiency at dental clinics by simultaneously preparing electronic and printed receipts.
CLSA CP closed its fourth fund last year with $450 million. It marks the beginning of a transition, with the Japan team having agreed to a gradual separation from its Hong Kong-headquartered parent.
The firm has identified workplace IT as a growing field due to business digitization trends related to COVID-19. Sunrise III was active in IT services as recently as December, when it acquired a majority stake in Rise Consulting, which claims to take a hands-on approach to artificial intelligence and internet-of-things integration.
Previous acquisitions by Sunrise III in this space also include human resources specialist Earth Technology, a human resources specialist that distinguishes itself as a bilingual player in a category where English-proficient engineers are scarce.
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