TA Associates, a global growth private equity firm, and Francisco Partners, a global technology-focused private equity firm, have a made a significant growth investment in Edifecs, a global health information technology solutions company. Financial terms of the transaction, which is expected to close in the third quarter of 2020, have not been disclosed.
Founded by Gurpreet (Sunny) Singh in 1996, Edifecs is a premier technology company in the US healthcare market with solutions focused on interoperability, workflows, value-based care payments and analytics. Since its inception, Edifecs has provided a full range of capabilities to support most healthcare entities (ie, payers, providers, employers, third-party administrators and government agencies). With innovative technology and solutions, the company helps its customers by optimising the secure exchange and processing of administrative and clinical data, reducing the cost of meeting various regulations and automating workflows involved in multiple core processes within the healthcare ecosystem.
Edifecs is a frontrunner in bringing new technology for B2B data exchange in healthcare, streamlining business processes from “card to care” and reducing the industry burden associated with data provisioning at the points of enrolment, care, payment and reporting. With the advent of FHIR (Fast Healthcare Interoperability Resources) and new regulatory guidance from HHS (US Department of Health & Human Services), Edifecs has emerged as a leader in easing the effort associated with achieving compliance with new federal rules and in making the healthcare consumer the primary stakeholder. The company has more than 600 employees and is headquartered in Bellevue, Washington, with additional offices in Atlanta, Georgia and Mohali, India, and an engineering center in Moldova.
“Today’s healthcare industry is in a transformation, and technology companies play a key role in helping the industry navigate this change at an accelerated pace. The investment from TA Associates and Francisco Partners will help Edifecs catalyse this transformation, innovate faster and bring technology to market quicker to meet the demands of our customers,” says Sunny Singh, founder and CEO of Edifecs. “We are pleased to welcome TA Associates and Francisco Partners as investors in Edifecs. Together, they bring more than 60 years of experience in the healthcare and technology industries, and both have demonstrated a strong record of helping thriving companies such as ours accelerate growth. I am confident that TA and Francisco Partners will be valuable partners during this journey.”
“TA is excited to invest in Edifecs, which has established an enviable position in the healthcare industry with its innovative and flexible technology solutions,” says Ashutosh Agrawal, a managing director at TA Associates who will join the Edifecs Board of Directors. “As stakeholders in the US healthcare market shift from fee-for-service models to value-based care arrangements, the interoperability of healthcare data that Edifecs enables will become increasingly vital. We believe that Edifecs is well-positioned to capitalize on this trend, and we look forward to partnering with Sunny, the Edifecs team and Francisco Partners as Edifecs enters its next phase of growth.”
“As an innovator in the healthcare technology space, with a leadership position in many of the segments in which it operates, as well as its long track record of profitable growth, Edifecs is a perfect investment fit for Francisco Partners,” says Ezra Perlman, co-president of Francisco Partners who will join the Edifecs Board of Directors. “We are thrilled to partner with Edifecs and TA, and we look forward to adding value as Edifecs continues to expand its product offerings to better serve the evolving needs of its customers.”
In addition to Agrawal and Perlman, Jennifer Mulloy, a managing director at TA Associates, and Ali Evans, a vice president at Francisco Partners, will join the Edifecs Board of Directors.
DLA Piper and Karr Tuttle Campbell provided legal counsel and TripleTree served as financial advisor to Edifecs. Kirkland & Ellis provided legal counsel and Deutsche Bank served as financial advisor to TA Associates and Francisco Partners.
