SIOUX FALLS, S.D. (KELO) — DocuTAP is changing things up. The healthcare IT company founded in Sioux Falls has grown into a nationally-known business. Now, they’re merging with a top competitor. We find out what brought this shift and how it could impact the local economy.
Not everyone views mergers as a positive thing. However, DocuTAP founder and former CEO, Eric McDonald, believes this is the most positive move to take with his biggest competition.
“When we’re both growing at incredible rates, what happens when we combine both of those growth rates and just join forces. I think too often there’s negativity in this world and it’s like hey how do we set down the negativity and join together to create something really positive,” said McDonald.
DocuTAP and Practice Velocity will now be known together as Experity. The tech company offers IT services to healthcare systems in every state. Now, they’re going to be even bigger.
“This merger, when you think about it combined, will have 4,000 urgent care clinics across the country. So it naturally expands our reach. Really doubles both of us,” said Blosl.
While no big expansions are being announced at the moment, Experity’s CFO, Matt Blosl, sees employee growth in the future.
For the man who started it all, it’s going to be an adjustment to walk away, but he’s ready for a change in pace.
“The number of times that a CEO, founder/CEO, can exit his own company is few. So to be able to have this transaction and to know that I’m leaving the company at its high. We’ve had our best financial quarters two quarters back to back. Our employee retention rates, our client retention rates in sales numbers have all been the best the company has ever seen. So I’m leaving on a high,” said McDonald.
“This is something Eric and I talked about 2.5 years ago when he brought me on to the team. So he was very intentional in thinking about successional planning, and we’ve spent the last 2.5 years building a really, really world class executive team. The other thing is Eric’s not going far. He going to be a member of the board. I see him playing a key role in Experity well into the future,” said Blosl.
The DocuTAP merger was officially complete on Friday. Blosl says fully integrating both companies together could take a few more years to finish.