Paradigm Acquired By Smart Employee Benefits, Inc.
7 Mile Advisors Acted As Sell-Side Advisor To Paradigm Consulting Group In Their Acquisition By Smart Employee Benefits
7 Mile Advisors is pleased to announce that its client, Paradigm Consulting Group Inc. and their affiliates (collectively, “Paradigm”), has been acquired by a subsidiary of Smart Employee Benefits Inc. (TSXV:SEB) (“SEB”). The purchase price of Paradigm is up to C$15,793,436, consisting of firm consideration of C$13,427,864 and additional consideration of up to C$2,365,572 if certain performance targets are achieved. In addition 1 million share purchase warrants were issued for employee retention.
John McKimm, President/CEO/CIO of SEB stated, “Paradigm’s experience and enviable references add to our growing Canadian presence, particularly in Saskatchewan and Manitoba, both long time innovators of healthcare services. This acquisition is in line with our focus on deepening client relationships in government and healthcare in Western Canada. Paradigm brings both important client relationships and technology expertise that add to SEB’s suite of solutions and services, enhancing SEB’s technology offerings and significantly increasing SEB’s delivery capability to corporate and government sectors in Western Canada.”
Mark Hustak, President/CEO of Paradigm stated, “Having grown unique specialties in healthcare IT and managing and transacting big data, SEB has the ability to significantly deepen our expertise in our current markets and beyond. With SEB, we are poised for delivery of high value-add solutions that satisfy customers’ most relevant needs in the growing demand for immediate Business Intelligence around Big Data.”
More information is available from SEB’s website here.
7 Mile Advisors acted as the sell-side advisor to Paradigm and congratulates them on successfully completing this transaction. Equiteq was a strategic advisor to Paradigm and instrumental in preparing the company for sale.
Paradigm has a 23-year history of providing management and information technology consulting services to healthcare, insurance, financial services, public sector, telecom and energy clients. With over 150 billable consultants, primarily employee based, Paradigm is a market leader for delivering management consulting, portfolio/program/project management and application technology services to an enterprise level client base. Paradigm has a very deep portfolio of IP for its key client verticals which enables accelerated delivery of projects and maintains long term client relationships. Paradigm’s staff has very strong accreditations in numerous technology disciplines which differentiate them in the marketplace. The majority of Paradigm’s employees are shareholders. The “senior partner team” of six has over 180 years of combined industry expertise.
SEB’s core expertise is managing specialized Big Data environments, of which healthcare is a major focus. SEB is a technology company providing, via a SaaS business model, software, solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients. Health Claims Processing alone is a $60.0 plus billion industry, of which over $37.0 billion is employee group benefit plans and over $25.0 billion of other healthcare benefit claims (e. g. workers’ compensation claims, travel benefits, various federal and provincial government programs, dental associations, drug associations, etc.).
In the employee group benefits industry, SEB operates as a Third Party Administrator and Insurance Brokerage utilizing its software platform to provide “totally hosted PCI compliant supply chain solutions” for managing the complete group benefits business processes between insurers, clients, brokers, consultants, technology service providers and healthcare service providers. In healthcare claims processing, SEB also operates as a systems integrator utilizing its technology platform together with other technologies to provide customized, fully integrated solutions for specialized environments (e.g. travel claims, student benefits, hospitals, unique government applications, etc.). The technology and expertise deployed in this area also allows SEB to provide other related supply chain, systems integration and human resource solutions and services to the same clients.
Equiteq is a consulting sector M&A specialist. They work with consulting firm shareholders, helping them to achieve their business objectives and exit strategies. Their services are designed to deliver great returns for their clients, by accelerating revenue, profit and equity value growth, and ultimately realizing that value in a trade sale or other type of liquidity event. For more information, please visit: www.equiteq.com
About 7 Mile Advisors:
7 Mile Advisors is a boutique investment bank which enables clients to increase and unlock enterprise value. 7 Mile serves clients worldwide by addressing the transactional and strategic opportunities faced by middle-market companies, boards, and financial sponsors. The firm provides customized mergers & acquisitions, private placement and restructuring services. All securities transactions are executed by 7M Securities, LLC, member FINRA / SIPC.
For more information, including research on the M&A markets, visit www.7mileadvisors.com