Fortissimo in $85m AOD Exit

Private equity firm had paid $17 million for firm in 2007.

Fortissimo Capital made another profitable exit for investors last week. The private equity group sold AOD Software to a group of private investors, led by private equity fund Primus Capital, which specializes in investments in the healthcare industry.

Fortissimo, which received several offers for AOD, did not announce the price of the deal, but industry sources estimate it at between $80 million and $85 million.

Fortissimo bought AOD, then known as Advanced Answers on Demand, from Magic Software in 2007, for $17 million. Of this amount, $10 million was a loan from Bank Leumi, so Fortissimo will be making about 10 times the value of the equity it put up for the purchase.

AOD was founded in 1995 and makes software used by healthcare managers who provide long-term care for senior citizens and others. AOD's AnswersElite software is used in more than 700 complexes in the U.S.

The company's headquarters are located in Ft. Lauderdale, Florida, where 100 employees work.

AOD originally focused on financial management software for the long-term and retirement care industry, but in recent years it expanded its offerings to include clinical and operations systems. The long-term care market is projected to experience exponential growth over the next decade due to the retirement needs of baby boomers, longer life spans and better care, said Fortissimo.

Fortissimo manages assets of $500 million, mostly in areas of technology and industry. Its largest exit ever came in October 2011, when five years after it invested $8 million in SodaStream, Fortissimo sold it for $230 million. The fund also sold Nur Macroprinters to HP for $123 million in cash in 2008.

Fortissimo is currently raising $250 million for a third fund. Yuval Cohen is the founding and managing partner.