Noro-Moseley Investment Carmel's Dormir Raises $12M from VC Firms
CARMEL, IN (Indianapolis Business Journal) -- Carmel-based Dormir Inc., which operates sleep study centers and sleep equipment stores around the country, raised $12 million in venture capital from three out-of-state firms.
The company plans use the proceeds to acquire six to 10 companies this year and more next year, according to CEO Tim Miller. Dormir is trying to scoop up financially weak sleep diagnostic and therapy companies.
Dormir already operates 32 sleep diagnostic centers and 31 retail stores. It acquired 12 of those locations earlier this year went it purchased two companies in Florida.
Dormir, which Miller launched in 2005, now employs 212, more than 80 of which are at its Carmel headquarters.
Dormir focuses on diagnosing patients with sleep apnea, which has been shown to contribute to numerous chronic diseases, such as hypertension.
“If we can bring these patients in and effectively treat them, we believe that we will save dollars to the health care system,” Miller said.
Miller said he started to look for acquisitions after the federal Medicare program cut reimbursement for sleep therapy last fall, which has weakened many of his competitors. He said Dormir has continued to grow even after the reimbursement cuts.
The firm leading the investment round was Connecticut-based CHL Medical Partners. Also contributing were Georgia-based Noro-Moseley Partners and Massachusetts-based Excel Venture Management.
Miller declined to disclose Dormir’s current revenue. However, he said he hopes to grow the company to 170 locations and more than $100 million in revenue by the end of 2012.