Founded in 2001, Tennessee-based Censis Technologies provides software as a service-based surgical instrument tracking and workflow solutions for the sterile processing departments of hospitals and ambulatory surgical centres. The software is used for assisting with the assembly of trays for surgical procedures, which can contain hundreds of instruments; sterilising instruments; and managing inventory from purchase through to retirement.
The company’s flagship product, Censitrac, provides customers with a real-time dashboard that can locate a specific tray within a hospital and automatically alerts users to issues such as incorrect assembly, insufficient sterilisation, missing instruments or instruments requiring maintenance.
Disorganisation in sterile processing departments can cause costly disruption and delays, while improperly sterilised equipment can lead to widespread infections. Riverside acquired the business in the summer of 2014, drawn by the increasing demands that hospitals face when it comes to regulation and the need to deliver exceptional care.
At the point of acquisition, Riverside had a clear vision for value creation – the firm planned to work alongside management to drive organic growth through investment in sales and marketing and strategic price increases. It also aimed to improve the product suite by introducing new modules that could be sold separately and to add new functionality to the core software. Another key component was the completion of an important strategic acquisition.
Among the firm’s key wins was the successful expansion of the sales function, which enabled Censis to capitalise on an underpenetrated market. The company more than quadrupled the number of hospitals served during Riverside’s five-year holding period.
Riverside also sourced and completed the bolt-on acquisition of St Louis-based Applied Logic in 2018, to support Censis Technologies’ vision to remain the first-class choice for surgical inventory management software. Applied Logic provides software and third-party hardware used in hospitals’ and other medical facilities’ sterile processing departments.
Riverside sold Censis to Washington-based conglomerate Fortive, a spin-off from Danaher, in November 2019.
The judges, who scored this deal particularly highly for growth strategy, praised the innovative solutions the company provides to the healthcare industry. “Censis Technologies’ client base grew dramatically,” one judge added. “The strategic combination of Applied Logic was important.”