SimplePractice Announces Strategic Purchase of Assets of Luminello

Rhea-AI Summary

SimplePractice, an EngageSmart solution, has announced its strategic agreement to acquire assets of Luminello, an electronic medical record and practice management platform. This deal is expected to expand SimplePractice's presence in the psychiatric segment of the mental health market.

Positive

• The acquisition of Luminello will enable SimplePractice to expand its presence in the psychiatric segment of the mental health market.
• By offering a greater range of functionality, SimplePractice expects to accelerate growth with multi-disciplinary group practices.
• The transaction is intended to increase the value of new offerings SimplePractice has developed to make mental health more accessible.

Negative

• None.

LOS ANGELES--(BUSINESS WIRE)-- SimplePractice, an EngageSmart (NYSE: ESMT) solution and industry-leading platform simplifying the health and wellness experience for more than 178,000 solo and small group practitioners, announced it has entered into a strategic agreement to acquire assets of Luminello, an electronic medical record and practice management platform supporting thousands of solo and small group psychiatrists, psychiatric nurse practitioners, psychologists and other prescribing medical professionals.

“We are thrilled to work closely with the Luminello team who support this critical segment of the mental health market. We are excited about the opportunity to bring the value of SimplePractice to this important segment and we look forward to bringing the benefits of SimplePractice to Luminello's customers,” said SimplePractice President Jonathan Seltzer. “Demand for mental healthcare, particularly in the psychiatry segment, is unprecedented. We are humbled to serve and will continue to innovate on behalf of this critical group of medical professionals within the healthcare system.”

The Luminello deal is expected to enable SimplePractice to expand its presence in the psychiatric segment of the mental health market. By offering a greater range of functionality for its growing practitioner base, SimplePractice expects to accelerate growth with multi-disciplinary group practices. To solve more complex and acute mental health diagnoses, a growing number of group practices include both prescribers and non-prescribers. Luminello offers distinct workflows, features and functionality, including e-prescribe, which when rolled out have the potential to drive higher value for all practitioners and unlock the potential for serving multi-disciplinary group practices. This transaction is also intended to increase the value of new offerings SimplePractice has developed to alleviate the administrative burden of working with Health Plans, Managed Care Organizations and Employee Assistance Programs on behalf of independent practitioners to continue to make mental health more easily accessible— particularly for patients whose conditions require medication.

“Both SimplePractice and Luminello were founded by clinicians looking to simplify the business of running an independent solo or small group mental health practice,” said Ken Braslow, MD, Founder, Luminello. “Today, we remain equally committed to removing the administrative burdens that practitioners face and look forward to combining the strength of our collective experience to serve even more practitioners and their patients.”

Luminello’s strength in serving prescribers will add to SimplePractice’s deep expertise in supporting mental health practitioners. Bringing together these industry-leading offerings will create meaningful value for current and future customers, as well as their patients.

About SimplePractice

SimplePractice, an EngageSmart healthcare solution, is the industry-leading platform simplifying the health and wellness experience for both the practitioner and patient.

SimplePractice supports health and wellness providers in their journey from starting to growing a thriving practice. More than 178,000 providers trust SimplePractice to build their business through industry leading software, ongoing education and powerful tools that connect them to clients seeking care. Clients can find and request an appointment directly with the right therapist and manage their care all in one place.

Recognized by Built In as one of the Best Midsize Companies to Work For in Los Angeles in 2022, SimplePractice is proud to pave the future of healthtech. To learn more, visit SimplePractice.com, or join the conversation on LinkedIn, Instagram, Facebook, and Twitter.

About EngageSmart

EngageSmart is a leading provider of vertically tailored customer engagement software and integrated payments solutions. At EngageSmart, our mission is to simplify customer and client engagement to allow our customers to focus resources on initiatives that improve their businesses and better serve their communities. EngageSmart offers single instance, multi-tenant, true Software-as-a-Service (“SaaS”) vertical solutions, including SimplePractice, InvoiceCloud and DonorDrive, that are designed to simplify our customers’ engagement with their clients by driving digital adoption and self-service. As of June 30, 2023, EngageSmart serves 109,700 in the SMB Solutions segment and 3,400 customers in the Enterprise Solutions segment across several core verticals: Health & Wellness, Government, Utilities, Financial Services, Healthcare and Giving. For more information, visit www.engagesmart.com and follow us on LinkedIn.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “could,” “should,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the first quarter and full year 2023 and thereafter, and other statements that are not historical facts. These forward-looking statements are neither promises nor guarantees but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, but not limited to, the following: our inability to sustain our rapid growth; failure to manage our infrastructure to support our future growth; our risk management efforts not being effective to prevent fraudulent activities; inability to attract new customers or convert trial customers into paying customers; inability to introduce new features or services successfully or to enhance our solutions; declines in customer renewals or failure to convince customers to broaden their use of solutions; inability to achieve or sustain profitability; failure to adapt and respond effectively to rapidly changing technology, evolving industry standards and regulations and changing business needs, requirements or preferences; real or perceived errors, failures or bugs in our solutions; intense competition; lack of success in establishing, growing or maintaining strategic partnerships; fluctuations in quarterly operating results; future acquisitions and investments diverting management’s attention and difficulties associated with integrating such acquired businesses; general economic conditions (including inflation and rising interest rates), both domestically and internationally, as well as economic conditions affecting industries in which our customers operate; the war in Ukraine; concentration of revenue in our InvoiceCloud and SimplePractice solutions; COVID-19 pandemic and its impact on our employees, customers, partners, clients and other key stakeholders; legal and regulatory risks; and technology and intellectual property-related risks, among others.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021, and our subsequent Quarterly Reports on Form 10-Q, as updated by our future filings with the Securities and Exchange Commission (“SEC”). Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law.

Disclosure

We disclose information to the public concerning EngageSmart, EngageSmart’s products and services, and other items through a variety of disclosure channels in order to achieve broad, non-exclusionary distribution of information to the public. Some of the information distributed through these disclosure channels may be considered material information. Investors and others are encouraged to review the information we make public in the locations below.* This list may be updated from time to time.

*For information concerning EngageSmart and its products and services, please visit: www.engagesmart.com

*For information provided to the investment community, including news releases, events and presentations, and SEC filings, please visit: investors.engagesmart.com/overview/default.aspx

*For information provided to the media, including news releases, please visit: investors.engagesmart.com/news/default.aspx

*For additional information, please follow EngageSmart’s social media accounts: www.twitter.com/engagesmartinc, www.facebook.com/EngageSmartInc, and www.linkedin.com/company/engagesmart

View source version on businesswire.com: https://www.businesswire.com/news/home/20230802363332/en/

Media:

Cathy Corwin, Quarter Horse PR

engagesmart@qh-pr.com

Investor Relations:

Josh Schmidt, EngageSmart, Inc.

IR@engagesmart.com

Source: EngageSmart

FAQ

What is SimplePractice?

SimplePractice is an EngageSmart solution and an industry-leading platform that simplifies the health and wellness experience for solo and small group practitioners.

What is Luminello?

Luminello is an electronic medical record and practice management platform that supports solo and small group psychiatrists, psychiatric nurse practitioners, psychologists, and other prescribing medical professionals.

What is the strategic agreement between SimplePractice and Luminello?

SimplePractice has entered into a strategic agreement to acquire assets of Luminello.

What is the expected impact of the deal?

The deal is expected to expand SimplePractice's presence in the psychiatric segment of the mental health market.

How will this acquisition benefit SimplePractice?

The acquisition will enable SimplePractice to offer a greater range of functionality and accelerate growth with multi-disciplinary group practices.

What are the goals of SimplePractice's new offerings?

SimplePractice aims to alleviate the administrative burden of working with Health Plans, Managed Care Organizations, and Employee Assistance Programs to make mental health more accessible.

What expertise does SimplePractice bring?

SimplePractice has deep expertise in supporting mental health practitioners.

What is the mission of SimplePractice and Luminello?

Both companies were founded by clinicians looking to simplify the business of running an independent solo or small group mental health practice and remove administrative burdens.