Sutton Coldfield-based monitoring services provider Care Monitoring 2000 has undergone a management buy-out.
It has seen the management team purchase the interests of investor Nestor Healthcare to assume full control of the business.
The deal - for an undisclosed sum - was funded by the Royal Bank of Scotland with Fusion Corporate Finance in Birmingham advising the management team.
Care Monitoring 2000 was formed in 1999 and is a leading supplier of electronic monitoring services to both local authority and independent sector homecare providers.
It has 20 staff and turnover of £2 million.
Primarily operating in the public sector, its CallConfirmLive! System monitors home care visits providing detailed management information to enable providers to ensure that services are being delivered in a timely and cost effective manner.
The firm also offers project management, training and support to customers.
Nestor Healthcare became an investor in the company at its launch, but after a period of strong growth, which has seen it secure a number of long term contracts, the management team felt the time was right to assume full control of the business.
RBS in Birmingham provided a senior debt and working capital package to support the acquisition of the shareholding and provide an ongoing facility to support the operational side of the business.
It worked on the financing of the deal, with Birmingham-based Fusion Corporate Finance which acted as advisors to managing director Peter Longman and his team.
Mr Longman said: "The market is expanding at a rapid rate, and we design our systems to support operators who are working to strict cost and legislative parameters.
"By increasing the breadth and detail contained in the information we provide to our customers, we hope to be in a clear position to increase quality in homecare and ensure that public money is spent effectively and efficiently. Since we set up the business we have worked hard to establish ourselves and the portfolio of clients we now have is testimony to the credibility of our systems and o ur reputation in the marketplace.
"This seemed like the right time to take full control of the business, and we are delighted to have completed this deal which marks a new chapter in the history of the company."
Stephen Fadian, associate director, structured debt solutions at RBS, who worked on the funding of the deal, said: "Utilising his experience as a contracts officer at Birmingham City Council, Peter spotted a gap in the market and by combining sound business acumen and the technical expertise of technical director, Chris Jackson, has built up a strong and reputable operating model.
"This deal to take full ownership of the company provides a clear focus for the management team as they continue to grow the business."
Mike Higgins, partner at Fusion Corporate Finance, added: "With ageing demographics, the care sector in the UK has grown rapidly and is forecast to continue to grow over the coming years.
"Therefore smart operators in the sector have a good opportunity to grow their own business."