K1 announced the sale of its portfolio company ChiroTouch to Waud Capital Partners. Under K1’s ownership, ChiroTouch grew to become the world’s largest provider of electronic healthcare records and practice management software to the chiropractic vertical, serving over 11,000 clinics. K1 acquired ChiroTouch in August 2014 and grew the company’s recurring revenue by a factor of more than 5x in less than three years. Terms of the sale were not disclosed.
During its ownership, K1 strengthened the ChiroTouch management team, refined its go-to-market strategy, and focused the product roadmap on delivering value to chiropractic professionals. Additionally, ChiroTouch transformed the industry landscape via an aggressive add-on acquisition program, collectively bringing together five companies under the ChiroTouch umbrella.
Financing for the investment was provided by PNC Business Credit and Goldman Sachs BDC, Inc. “PNC shares K1’s focus on software companies with high growth potential. We value our relationship with K1 and the opportunity to provide the financing for their investment in ChiroTouch,” says Bill Kosis, CEO of PNC Business Credit.
“We are thrilled to have partnered with K1 on its investment in ChiroTouch. We believe that K1’s expertise in human capital management, sales and marketing, software development, customer support and M&A was the catalyst for ChiroTouch to drive recurring revenue growth, expand its TAM and ultimately create value for shareholders,” says Jon Yoder, Chief Operating Officer of Goldman Sachs BDC, Inc.
“K1 was instrumental in re-shaping our focus on the industry and rapidly growing our business over the past three years,” says Robert Moberg, CEO of ChiroTouch. “From the start, I was impressed by the team’s knowledge of our space and the B2B software industry. Without K1’s direct sourcing focus and operational expertise, we would not be where we are today. I am incredibly optimistic about the future of ChiroTouch, and couldn’t be happier with the effort and results achieved by the ChiroTouch and K1 teams.”
“We have worked closely with the ChiroTouch executive team to build the preeminent provider of software solutions for the chiropractic industry,” says Ron Cano, Partner at K1. “We were fortunate to partner with Robert and his team and look forward to their continued success.”
Editor's Note: An earlier version of this story misidentified PNC Business Credit and Goldman Sachs as providing financing for this acquisition. In actuality those lenders provided the capital for K1’s original purchase of ChiroTouch in 2014. We regret the error.