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Terms of the transaction were not disclosed, though Summer Street uses itsaggregate $300 million under management to make equity investments thattypically range from $5 million to $30 million in companies with annualrevenues of $20 million to $100 million.
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Prism currently counts more than 15 major health plans as customers,including the largest in each of New York City, Upstate New York and Florida.Health-plan customers rely on Prism's quality-, disease-, and utilization-management programs and claims administration services to reduce health carecosts by improving health-plan members' long-term muscular-skeletal health.
Prism's expansion plans include creating at least 25 new jobs at its WestSeneca headquarters by 2010. Currently the company employs about 90 people inUpstate New York and Florida.
"Prism succeeds when we simplify the complexities of managing muscular-skeletal health for our customers, clinicians and patients," the company'sPresident and Chief Executive Officer Paul J. Candino said. "With SummerStreet's investment and expertise, we intend to expand the company nationallythrough organic growth and acquisitions, making Prism synonymous withmuscular-skeletal health."
A portion of the new capital has already been used to help finance Prism'srecent purchase of Chiropractic Alliance Corporation of Tampa. SummerStreet's investment is expected to fund future acquisitions by Prism, as wellas the workforce expansion and new service offerings for health-plan customersnationwide.
"We're investing alongside a very talented management team with tremendousindustry expertise," Summer Street Managing Partner Brian D'Amico explained."They've built a business model that we believe has outstanding growthpotential, and we're very pleased to help finance this promising company'sexpansion plans."
Members of Prism's management team remain major shareholders of thecompany. In addition to CEO Paul Candino, they include Prism Chairman andChief Clinical Officer Kevin E. Cichocki, DC and Executive Vice President andChief Operating Officer Mark Zygaj. In conjunction with the transaction, thethree Prism executives were joined on the company's new seven-member board ofdirectors by:
"Prism's non-executive directors have nationally recognized health careindustry expertise and records of success as entrepreneurs, deal-makers andbusiness leaders that is rarely found on the board of a company our size,"Candino said. "I believe the ability to attract these directors to our boardis evidence of Prism's excellent prospects and growth potential."
ABOUT PRISM
Prism's mission is to provide the best access for clinically excellent andaffordable muscular-skeletal health. Headquartered in West Seneca, N.Y., theintegrated muscular-skeletal health services company provides health-plancustomers with outsourced managed-care services for physical therapy,chiropractic medicine, and fitness and wellness. Health-plan customers relyon Prism's quality-, disease-, and utilization- management programs and claimsadministration services to reduce health care costs by improving health-planmembers' long-term muscular-skeletal health. The company is a registeredutilization review agent with URAC accreditation in Health Network and HealthUtilization Management Standards. More information on Prism may be found atwww.prismnetwork.com.
About Summer Street Capital Partners LLC
Summer Street Capital Partners LLC, founded in 1999, is a Bu
