Kaufman Hall spins off its software division into new company, Syntellis Performance SolutionsPosted Jun 25, 2020
Award-winning enterprise performance management software and analytics organization forms standalone company focused on solutions for healthcare, higher education, and financial institutions
CHICAGO – June 25, 2020 – Kaufman, Hall & Associates, LLC, a leading provider of enterprise performance management (EPM) software, data and management consulting solutions, today announced that its software division will separate from Kaufman Hall to create Syntellis Performance Solutions, LLC, a new standalone company. Kermit S. Randa, who currently leads Kaufman Hall’s software division, will become the Chief Executive Officer of Syntellis. Additionally, leading private equity firms Thoma Bravo and Madison Dearborn Partners (MDP) will partner to invest in Syntellis.
Syntellis brings together Kaufman Hall’s Axiom Software and the recently acquired Connected Analytics practice of Change Healthcare, and it will focus on providing the most robust, innovative EPM software, data and analytics platform to healthcare, higher education and financial institutions.
Syntellis’ singular goal is to provide powerful, integrated and intuitive EPM solutions that make it easy for clients to acquire insights, accelerate decisions and advance their business plan, enabling those clients to elevate organizational performance and transform their vision into reality.
“At a time when many organizations are unsure about their path forward, and the focus on financial management and improvement is at a record high, Syntellis is investing in new ways to help healthcare, higher education and financial institutions elevate their performance,” said Kermit S. Randa, chief executive officer of Syntellis. “Building on decades of dedicated service, Syntellis is poised to rapidly pursue product innovation, a broader set of client success initiatives, and client-centric growth strategies, so that organizations can thrive amid uncertainty now, and for years to come.”
The name “Syntellis” expresses a focus on client value. As a fusion of the words “synthesis” and “intelligence,” Syntellis represents the power of bringing things together to produce an outcome far greater than the sum of its individual parts. It signifies Syntellis’ focus on delivering solutions that turn data into intelligence and transforming that intelligence into a clear path forward for its clients.
Thoma Bravo and MDP—both experienced investors in software, healthcare and healthcare technology— will play an integral role in enhancing Syntellis’ partnerships, operational investments, and product innovation. MDP also will remain a significant investor in Kaufman Hall.
“We’ve known the product suite now inside of Syntellis for many years, and we always knew that together with the management team and MDP, we could push innovation and growth quickly as a standalone company,” said A.J. Rohde, a partner at Thoma Bravo. “Cloud-based performance management tools are the wave of the future to drive operational efficiencies for hospital systems, higher educational and financial institutions, and we are so excited to be a part of creating the de facto product platform for years to come.”
“The COVID-19 pandemic has increased demand for new technology that can help institutions leverage the power of their financial and operational data,” said Jason Shideler, a managing director at Madison Dearborn Partners. “Our investment is intended to help Syntellis deliver on that promise, and execute on its mission of helping institutions elevate financial, operational and clinical results. We are excited to partner with Thoma Bravo, with their strong track record as software investors, and further invest in Syntellis as a compelling and formidable leader in the software sector.”
Syntellis, as a standalone company, has formed a strategic alliance with Kaufman Hall to continue to support and advance the needs of their mutual clients by providing market-leading data, insights and deep industry expertise. Syntellis will serve as Kaufman Hall’s EPM and data analytics provider of choice.
“Kaufman Hall has a proud history as the first firm in healthcare to integrate first-class consulting with software tools to support high performance,” said Kenneth Kaufman, managing director and chair of Kaufman Hall. “This approach has been a huge success—to the point where Kaufman Hall’s software practice has developed into a robust business of its own that is now ready to move to the next level. This transaction will make that next level a reality.”
“This transaction creates a formidable player in the EPM space, bolstered by the expertise of two significant investors,” said Wes Champion, managing director and chief executive officer of Kaufman Hall. “For its part, Kaufman Hall will continue its unparalleled commitment to what it does best: helping clients achieve transformative outcomes through industry-leading management consulting practices. We look forward to our strategic alliance with Syntellis to continue addressing the greatest challenges in key industry sectors.”
Syntellis’ software solutions include Axiom Comparative Analytics, the powerful technology behind Kaufman Hall’s popular monthly National Hospital Flash Report, acknowledged as the nation’s barometer of hospital performance during the COVID-19 pandemic. Recently, Axiom software has also received No. 1 rankings from Black Book Research, and recognition from BPM Partners, a leading independent performance management advisory services firm.
“The Syntellis team has provided integrated business planning solutions that have built a longstanding reputation for providing thoughtful analysis and benchmarking to guide better decision-making and strategic planning,” said Craig Schiff, chief executive officer, BPM Partners. “Finance executives across some of the most complex vertical markets will be able to leverage Syntellis’ current technology—and benefit from increased future product investment—to thrive amid the uncertainty of especially challenging market conditions.”
Committed financing for the transaction is being provided by funds managed by affiliates of BlackRock US Private Credit, Fortress Investment Group, The Private Credit Group of Goldman Sachs Asset Management, L.P., Pathway Capital Management, L.P. and Thoma Bravo Credit.
Syntellis’ corporate headquarters will be in Chicago with additional offices in Portland, Ore. and Skokie, Ill.