Stout Advises Examinetics, a Freedom 3 Portfolio Company, on Sale to Coalesce Capital

August 23, 2023

Stout has advised Examinetics, Inc., a portfolio company of Freedom 3 Capital, on its sale to Coalesce Capital. The transaction closed on August 11, 2023. Stout served as the exclusive sell-side financial advisor to Examinetics in connection with the transaction.

Based in Overland Park, KS, Examinetics is a leading national provider of workforce health solutions through mobile and on-demand technology across a wide range of industries. The company offers a comprehensive suite of occupational health testing and compliance services to more than 3,000 clients, including many blue-chip, Fortune 500 companies, at approximately 18,000 client locations across the United States annually. The company launched Salux™, its internally developed auditory testing technology, in late 2022 to provide remote service delivery and materially expand its client reach. Coalesce’s investment is expected to enable the company to significantly accelerate its expansion in existing and new markets as well as support the introduction of new and innovative technologies and services to meet the increasingly complex regulatory requirements facing its clients.

Freedom 3 is a private investment firm based in New York that invests in North American middle-market companies across a range of sectors with a focus on family- and entrepreneur-owned businesses. The firm’s investment process provides it with the flexibility to tailor investment and capital structures to a company’s unique characteristics, industry dynamics, and the management team’s and owners’ long-term business objectives.

Coalesce is a newly formed private investment firm based in New York that seeks to invest in mid-sized human capital and technology-enabled business service companies. The investment in Examinetics represents the firm’s first platform investment.

“We are excited to join forces with our new capital partner as we look to scale our platform,” said Paul Fenaroli, CEO of Examinetics. “Freedom 3’s support drove a multi-year business transformation, helping shape Examinetics into the platform it is today. I am pleased to see Coalesce’s genuine interest and significant expertise in this space and know their ownership support will be right for the next phase of our growth journey.”

Brian Block, Partner at Freedom 3, added, “Examinetics is a tremendous company led by an industry-leading management team. The Stout team did an outstanding job leading us through the process and ultimately identifying the right partner for the company’s next phase of growth.”

Gary Gluzberg, President of Examinetics, said, “It is an incredibly exciting time for our company as we partner with such a proven team in the business services sector. Coalesce’s commitment enables Examinetics to accelerate our growth, invest further capital to serve customers, and continue to build national scale.”

Stephanie Geveda, Founding and Managing Partner at Coalesce, said, “We believe that this is a very strong company upon which to build and is perfectly aligned with our mission to back management teams who are building the platforms of tomorrow.”

Kevin Manning, President of Investment Banking at Stout, and Mark Abbott, Managing Director, led the transaction. Manning said, “We are very happy with the outcome for all parties in this successful transaction and look forward to the continued growth and success of Examinetics in partnership with Coalesce.”

Stout’s Nick Dreps, Natalie Walgren, Jack Dunsire, and Michael Gerszonovicz also assisted in the execution of the transaction.

Morrison Foerster served as legal counsel to Examinetics and Freedom 3. Kirkland & Ellis served as legal counsel to Coalesce Capital.

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