Investment firm Blackstone has agreed to buy a majority stake in HealthEdge, a US-based provider of health insurance management software that counts health insurance firm Medica as an investor.
The amount Blackstone is paying has not been disclosed, nor has the size of its prospective stake or which existing investors are set to exit through the deal.
HealthEdge produces administrative processing software that helps healthcare companies manage and configure their health plans cost-effectively. Medica formed a partnership with the company in 2013 and invested $34m four years later, marking its most recent funding.
The Medica transaction brought HealthEdge’s overall financing to approximately $126m, including $22.3m of debt financing, according to securities filings, $13m coming from venture capital firm and long-term investor Psilos Group in 2008.
Steve Krupa, HealthEdge’s chief executive, said: “We are thrilled to work with Blackstone as we enter the next chapter of our company’s growth.
“Blackstone’s expertise in healthcare and extensive operational resources made them our partner of choice to help fuel our continued expansion and better serve our customers in the years ahead.”
Morgan Stanley was financial adviser for HealthEdge while Goodwin Procter provided legal advice. TripleTree was Blackstone’s financial adviser and Debevoise & Plimpton its legal adviser.
