NEW YORK--(BUSINESS WIRE)--Blackstone (NYSE:BX) today announced that funds managed by Blackstone (“Blackstone”) will acquire a majority stake in HealthEdge, a leading technology business that delivers next generation Core Administrative Processing Systems (CAPS) solutions to healthcare businesses. The investment is being led by Blackstone’s growth equity team, which is focused on providing capital to fast-growing companies and helping them leverage Blackstone’s deep operating resources and scale to become market leaders.
Steve Krupa, CEO of HealthEdge, 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. We are deeply grateful to our employees, for all of their hard work and dedication; our customers for their loyalty and ongoing partnership; and our Chairman, Al Waxman, and his venture fund Psilos Group, for supporting our company from the very start. These stakeholders put us in the position for this transformative growth opportunity.”
Ram Jagannath, Global Head of Healthcare for Blackstone Growth, said: “We are excited to partner with Steve and HealthEdge’s outstanding management team as they continue to build a premier, comprehensive platform for healthcare payor technology. The company has a leading, innovative product that their customers find highly compelling in helping them manage an increasingly complex healthcare ecosystem. Together with Blackstone, HealthEdge is exceptionally well positioned for continued growth as an increasing number of healthcare companies seek superior, cloud-native technology solutions for administering their businesses.”
HealthEdge provides next generation, mission-critical CAPS solutions to health payors, which help them better administer benefits, configure plans, manage providers and enroll participants. Their products offer greater flexibility, a modern, simple user interface, and a cloud-compliant solution, which is well suited for the increasingly complex and data-rich healthcare environment.
Rick Jelinek, Board Member of HealthEdge and Executive Vice President of CVS Health, added: “On behalf of the company we are pleased to be partnering with Blackstone, which has the capital and resources to help HealthEdge further scale. The company has a leading technology offering and this partnership with Blackstone will help it continue to expand, benefiting the entire healthcare ecosystem.”
Morgan Stanley & Co. LLC served as financial advisor and Goodwin Procter LLP was legal advisor for HealthEdge. TripleTree served as financial advisor and Debevoise & Plimpton LLP was legal advisor for Blackstone. Terms of the transaction were not disclosed.
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $571 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
HealthEdge® provides modern, disruptive healthcare IT solutions that health insurers use to leverage new business models, improve outcomes, drastically reduce administrative costs and connect everyone in the healthcare delivery cycle. Our next-generation enterprise solution suite, HealthRules®, is built on modern, patented technology and is delivered to customers via the HealthEdge Cloud or onsite deployment. An award-winning company, HealthEdge empowers health insurers to capitalize on the innovations, challenges and opportunities that await in the new healthcare economy. For more information, visit http://www.healthedge.com, https://www.linkedin.com/company/healthedge, https://www.facebook.com/HealthEdgeInc, or follow HealthEdge on Twitter @HealthEdge.