Bain Capital has acquired US healthcare software provider HealthEdge in a deal valued at approximately $2.6bn, including debt, marking the latest in a series of successful exits of private equity-backed software companies, according to a report by the Financial Times.
As part of the deal, Blackstone will exit its majority stake in HealthEdge, a position it has held since 2020, with minority shareholders – such as Coatue Management, led by Philippe Laffont – also selling their holdings, according to sources familiar with the deal.
Despite a broader slowdown in mergers and acquisitions, the software sector remains a relative bright spot for deal activity, benefiting from its insulation from the volatility driven by President Donald Trump’s tariff policies.
Although Bain did not disclose the deal’s valuation in its statement, sources close to the transaction confirmed a price of $2.6bn, including debt.
HealthEdge provides cutting-edge software solutions designed to help health insurers streamline operations, such as plan design and claims management.
Serving 115 health plans covering over 110 million lives, the company generated $400m in revenue last year and posted $86m in EBITDA, according to individuals familiar with the transaction. Bain Capital partners Devin O’Reilly and Paul Moskowitz noted that HealthEdge is well-positioned to drive the integration of generative artificial intelligence into health plans.
Bain Capital, which oversees $185bn in assets, has a diverse portfolio spanning business services, healthcare, technology, and industrials. Its investments include healthcare payer leader Zelis, and it recently made a bid to take private Surgery Partners.
Blackstone initially placed HealthEdge on the market in 2022, though efforts to secure a buyer willing to meet its return expectations proved challenging.
The firm had acquired the company for $700m in 2020, during a surge in healthcare investments driven by the Covid pandemic. Blackstone has since supported a series of acquisitions, including Wellframe and Altruista Health, and will nearly double its initial investment upon completion of the sale.
M&A activity has slowed in recent weeks, with financial market volatility, concerns over interest rate trends, and the ongoing impact of trade policies dampening deal-making sentiment.
However, several notable software deals have gone through, including Clearlake Capital’s acquisition of a majority stake in Modernizing Medicine, valued at $5.3bn, and Siemens’s purchase of Dotmatics, a life sciences software company, for $5.1bn.
