Health Care IT Solutions Provider Values Employee Loyalty, Becomes 100% Employee-Owned

Overview

Keena Healthcare Technology (Keena) was formed through the combination of established clinical IT and data services businesses, bringing together years of industry experience into a single, integrated platform. Today, Keena is a nationwide provider of health care technology solutions focused on improving provider workflows, data systems and archival processes. Business leaders believe that the loyalty and technical expertise of their professionals have propelled the company’s success.

Situation

As Keena’s owners began planning for a long-term ownership transition, they sought a strategy that would preserve the company’s entrepreneurial, employee-focused culture, reward employees and support continued growth. After evaluating a range of alternatives, a 100% employee stock ownership plan (ESOP) was selected as the solution that best aligned with these objectives.

Solution

Keena engaged SES ESOP Strategies and its affiliated law firm, Stevens & Lee, to structure the ESOP and guide the company through the transaction process. SES led the full lifecycle of the transaction, including a feasibility study, modeling various structures, negotiating transaction terms with the trustee and conducting financial due diligence. Stevens & Lee prepared the legal documentation related to the ESOP transaction, supported the company’s reorganization and established a Stock Appreciation Rights Plan to incentivize future leadership. Following the transaction, Keena became a 100% ESOP-owned S corporation, allowing the company to effectively operate on a tax-free basis.

“The history of Keena’s success is owed in large part to the amazing contributions and loyalty of our employees. We knew we wanted to reward them for everything they’ve done by transitioning ownership into their hands,” said Craig Luce, Founding Partner of Keena Healthcare Technology. “SES and Stevens & Lee provided the technical and transactional solutions that turned our long-term legacy and business succession goals into a reality. We’re thrilled that our dedicated team can now have an equity stake in the business they’ve helped build and will continue to grow.”

For more information on this transaction, please contact Mark Russel, Head of Finance, at 817.566.1013, Sean-Tamba Matthew at 215.508.7705, Kyle Priebe, Senior Associate, at 215.508.5637 or Nate Stoner, Senior Financial Analyst, at 484.651.1081.