US Fertility, a nationwide fertility focused physician practice management platform providing non-clinical and administrative services to physician-owned fertility practices, and Ovation Fertility, a leading national network of reproductive endocrinologists and scientific thought leaders, announced today that they have entered into a definitive agreement to combine operations. The combined company’s enhanced platform will be well positioned to drive growth and innovation, while leveraging best practices to improve patient access, experience, and outcomes. Financial terms of the transaction were not disclosed.
USF provides non-clinical and administrative services to more than 120 physicians in highly experienced fertility centers across the country, with a network of clinics that perform more than 30,000 in vitro fertilization (IVF) cycles annually. More than 130,000 individuals and couples have trusted USF to help them build their families with assisted reproductive technology. USF is backed by Amulet Capital Partners (“Amulet”), a middle-market private equity investment firm focused exclusively on the healthcare sector.
Ovation is a leading network of fertility laboratories committed to applying leading-edge treatment options to improve outcomes for patients. In addition to IVF, it provides a range of ancillary services, including carrier screening, genetic testing, surrogacy, donor services, and fertility storage. Ovation has been backed by investments funds managed by Morgan Stanley Capital Partners (“MSCP”) since 2019.
Upon the close of the transaction, Ovation will continue to offer its best-in-class IVF lab and ancillary services as a wholly owned subsidiary of USF. Collectively, the company will provide a platform for growth and expansion into additional life sciences verticals.
“We have a truly transformative opportunity to help more people build the families of their dreams by bringing together the core competencies of US Fertility and Ovation. By creating a leading fertility network in the US, we can utilize shared best practices to enhance the patient experience, provide outstanding care, and deliver improved research and innovation to the fertility industry,” said Richard Jennings, USF CEO.
“Bringing these two organizations and their teams together offers tremendous long-term opportunities for both companies, their physicians, and their employees. Most importantly, however, we expect this partnership to have a tremendous positive impact on patients, who will benefit from the combined company’s high standard of clinical expertise and favorable pregnancy outcomes. By bringing together practices from entirely complementary and distinct geographies, we can bring world-class family building solutions closer to home for more patients across the country,” said Mark Segal, USF Chairman of the Board.
“Together, US Fertility and Ovation will create a dynamic platform that is well-positioned and well-resourced, offering enhanced capabilities to more patients. We are thrilled to collaborate with both companies and will continue to make timely and essential investments to support this next phase of growth,” said Jay Rose, Managing Partner, Amulet Capital.
“By aligning with US Fertility and Amulet, we will be able to strengthen the purpose that unites our scientists, physicians, and clinical care teams—bringing the joy of parenthood to more families through innovative science. We will work side by side to establish better industry standards and contribute to worldwide fertility research,” said Paul Kappelman, Ovation CEO.
“Through our successful partnership with Ovation’s management team and physician shareholders, the company has been able to execute on its purpose to deliver innovative science and cutting-edge care and support to patients through every stage of the fertility care journey,” said Steve Rodgers, Managing Director and Head of Healthcare at MSCP. “We are proud to have partnered with Ovation and its shareholder physicians to collectively build the business into a leading provider of fertility care.”
The transaction is expected to close in the second quarter of 2023, subject to customary closing conditions, including regulatory approval.
McDermott Will & Emery LLP served as legal counsel to US Fertility.
About US Fertility
US Fertility, the nation’s largest partnership of physician-owned and physician-led top-tier fertility practices, is united under a shared mission: to drive innovation and leverage best practices both to enhance the patient experience and improve treatment outcomes. To date, US Fertility has helped 130,000 babies be born through its fertility services. Our collective clinical and operational expertise provides our fertility partner practices with advanced business and digital solutions that streamline and enhance the delivery of exceptional patient care. https://www.usfertility.com
About Ovation Fertility
Ovation® Fertility is a national network providing leading-edge treatment through the hands and minds of the world’s foremost reproductive experts. Ovation’s IVF and genetics laboratories, along with affiliated physician practices, work collaboratively to raise the bar for IVF treatment, with state-of-the-art, evidence-based fertility services that give hopeful parents the best chance for a successful pregnancy. Physicians partner with Ovation to offer their patients advanced preconception carrier screening; preimplantation genetic testing; surrogacy services; and secure storage for frozen biomaterials. Ovation also helps IVF labs across America improve their quality and performance with expert off-site lab direction and consultation. https://www.ovationfertility.com
About Amulet Capital
Amulet Capital Partners is a middle-market private equity investment firm that focuses exclusively on creating long-term value for market leaders in the healthcare sector. The experienced principals at Amulet currently manage over $1.7 billion in healthcare investments. With over 50 years of deep industry experience and strategic relationships, Amulet helps solve complex and dynamic challenges in a wide range of healthcare segments. https://amuletcapital.com
About Morgan Stanley Capital Partners
Morgan Stanley Capital Partners, part of Morgan Stanley Investment Management, is a leading middle-market private equity platform established in 1986 that focuses on privately negotiated equity and equity-related investments primarily in North America. Morgan Stanley Capital Partners seeks to create value in portfolio companies primarily in a series of subsectors in the business services, consumer, healthcare, education and industrials markets with an emphasis on driving significant organic and acquisition growth through an operationally focused approach. https://www.morganstanley.com/im/capitalpartners
