• Eying targets with USD 5m-USD 15m EBITDA
• Could close 1-2 deals this year

Imagenet, a technology services provider to health plans and managed care organizations, is actively seeking targets following its first acquisition under its sponsor BV Investment Partners, CEO Zac Fritz told Mergermarket.

The Tampa-based company could make two or three more acquisitions before seeking an exit, he said, as it looks to create a “broad and deep solution set that is integrated on the backend” and that can serve as a single source of vendor partnership for payers in payer services.

The company has a couple of targets in its sights, but nothing is close, he said, adding it could close one or two deals in 2025.

Potential targets should generate EBITDA in the range of USD 5m to USD 15m annually, Fritz said.

Imagenet’s annual revenue is between USD 50m and USD 100m, Fritz said.

“A couple of our criteria are around where we can have good operating leverage and commercial synergies,” he said.

The company’s digital mailroom and Print-to-EDI (P2E) solutions are where most of its intellectual property and software is located, he said. Electronic Data Interchange (EDI) enables participating companies to exchange information electronically in a set format.

The digital mailroom and P2E segment are the company’s most profitable areas, and the largest growth area, Fritz said.

It could consider acquiring competitors in that area, he said. “We’re looking to apply more AI and machine learning,” he said.

The company also has a large claims adjudication business and contact center, some of which is outsourced to the Philippines. Fritz said Imagenet could broaden its capabilities in claims processing, whether through configuration, doing more complex claims, or automatic adjudication.

Imagenet could also look to add adjacencies it doesn’t have like it did with its recent acquisition of CODY and the member engagement and communication space, he said. “Maybe that (addition is) in payment integrity, maybe that’s in revenue cycle management, maybe it’s in other back-end payer services,” he said.

Imagenet announced its acquisition of CODY in December 2024. It was its first purchase under its sponsor, which invested in Imagenet in December 2022.  Fritz started in the CEO role in September 2023, and the company hadn’t had a CEO from the time of BV’s deal with Imagenet until his hire. Since then, Imagenet has been “shaking the trees”, working with bankers and its own internal M&A resources, he added.

The CODY deal was brought to BV from Tampa-based Hyde Park Capital, which led the process.

Fritz said the deal will help Imagenet “double down” on its software-as-a-service (SaaS) offering by allowing CODY’s software access to Imagenet’s client base.

Imagenet traditionally has provided tech-enabled services and back-office support tech but launched its own SaaS product with a large new client last year, Fritz said. Before that launch, the company had grown revenue by 42% from the previous year while increasing its operating margin from 51% to 57%, he added.

The CODY deal was financed with majority debt and then equity, Fritz said, adding future deals would be similar. Crescent Capital Group is the debt provider and Imagenet’s debt ratios were “healthy” headed into the transaction with CODY, he said.

“We have cushions there in terms of what we can take on relative to covenants,” he said.

Despite being only two years into BV’s investment, Imagenet receives a fair amount of strategic inquiries, Fritz said, adding he thinks that could be because of their strong penetration in the small and mid-market.

Imagenet used Bush Ross as legal counsel on the CODY deal while CODY used Black Swan Legal Counsel, Fritz said.

Imagenet has 1,100 employees.