New Convergent Owners Seek to Add More Firms

ARM-services provider Convergent Resources Inc. was bought in June by a partnership made up of Convergent’s CEO, two former executives at West Corp. and an investment firm, insideARM.com has learned.

The partnership includes Peter Picciocca, the current CEO of Convergent, Michael Micek and Michael Harrison, two former executives with West Corp., and Silver Oak Services Partners. The group bought Convergent for an undisclosed price from Cravey, Green & Wahlen Inc., an Atlanta-based private-equity investor in mid-size companies.

Convergent has more than 1,700 employees in 12 locations serving large hospital chains, medical practices, utilities, telecom firms, and financial services companies. Convergent is a full-service firm offering bad debt recovery, accounts receivables management and specialized recovery services. Annual revenues top $100 million, said Harrison.

Evanston, Ill.-based Silver Oak owns the majority share of Convergent, said Harrison. The partners created Convergent Resources Holdings as the parent company with Micek as CEO, Picciocca as chief operating officer, and Harrison as chief financial officer. Picciocca remains CEO of Convergent.  
The holding company is seeking further buys in the ARM industry, said Harrison. “We seek opportunistic acquisitions. Possibly where [Convergent] already operates, or possibly complimentary ARM firms,” said Harrison.

Convergent operates four divisions including ERS Solutions, an operator of four call centers offering contingency collections and first party outsourcing. The AHC division specializes in collections for large hospitals and healthcare providers. It has 75 attorneys on staff. The CHS division focuses on billing and collection services for medical practices and small- and mid-size hospitals. The CCH division provides commercial receivables management.

Evanston Ill.-based Silver Oak invests in smaller firms, typically those with revenues between $15 million and $150 million, according to a press release.

Harrison said he had been a vice president of finance at West Corp., while Micek had been chief financial officer there through 2002.