Advantage Capital Partners' funding enables Current Solutions to acquire Koalaty Products

Advantage Capital Partners, a leading venture capital and small business finance firm, has provided $3.15 million in financing to Current Solutions, LLC, a wholesale distributor of electrotherapy devices and accessories to medical supply organizations throughout the United States and Canada. The funding, made in connection with the Texas Certified Capital Company (CAPCO) program, enabled Current Solutions to acquire Koalaty Products, Inc. and will support the company’s move from Tampa, Fla. to Austin, Texas.

“We’re excited about the tremendous opportunity to grow this company in Texas,” said Glynn Bloomquist, CEO and President of Current Solutions. “Pain management is a segment of the overall health care industry that continues to get the attention of a growing number of therapists, doctors and chiropractors.”

Current Solutions, LLC was formed in July 2009 to acquire Koalaty Products, Inc., a provider of electrical stimulation products used for pain management, rehabilitation and physical therapy. In addition to the innovative TENS units, Koalaty also distributes electrodes, orthopedic pillows, braces, batteries and topical analgesics. Current Solutions plans to relocate the headquarters and open a second distribution facility in Austin by the end of the year. The company will also hire approximately 16 full-time employees over the next 12 months.

“The Current Solutions management team has a deep level of experience in Austin and is well-prepared for this new business venture,” said Les Alexander, senior vice president at Advantage Capital Partners. “Given the shift toward non-invasive rehabilitation devices and at-home physical therapy, we believe there is an opportunity for the company to build upon Koalaty’s already successful platform.”

Current Solutions President and CEO Glynn Bloomquist was previously CEO and investor in Austin-based Barton Medical Corporation, which experienced exponential growth and was named one of the Fastest Growing Private Companies in America in 2004 by INC Magazine. In addition, Chief Operating Officer Ken Taylor spent 12 years at Dell Inc., where he held numerous executive roles including Director of the company’s global supply chain strategy.

“Given the current state of traditional bank lending, we could not have made the move without the participation of the Texas CAPCO program,” added Bloomquist.

Advantage Capital’s investment in Current Solutions was made in connection with the Texas CAPCO program, which encourages the flow of investment capital to promising companies located in the state. The companies, in turn, develop innovative technologies and services, create jobs and increase economic activity throughout their communities. Focus Strategies, Current Solutions management and other individual investors provided an additional $950,000 to the company for startup capital and to finance the acquisition of Koalaty.

www.advantagecap.com/