INDIANAPOLIS, Ind.--(BUSINESS WIRE)--Frontier Capital is pleased to announce that it has partnered with existing management to complete a majority recapitalization of Healthx, Inc., a leading provider of online healthcare portals to health insurers, medical providers, and employers.
Founded in 1998 and based in Indianapolis, Indiana, Healthx develops self-service communication and data integration portals for the healthcare and human resources industries. The company aims to meet the unique communication needs of the healthcare industry by helping payers and employers deliver benefits faster, more effectively, and at a lower cost. President and CEO Greg Bell will continue to lead Healthx. Frontier’s $22 million investment will support the company’s continued expansion and leadership in the healthcare IT market.
“We think the future looks bright for Healthx and our growth trend indicates the market agrees,” said Greg Bell. “We look forward to partnering with Frontier and believe that together we can enhance the next level of growth for Healthx. The Frontier team has significant experience working with high growth, tech-enabled and SaaS companies, and we are excited that they have become part of our team.”
“Frontier is impressed with what the management team has accomplished in driving the company’s growth and its emergence as a leader in the market,” said Michael Ramich, Partner of Frontier Capital. “We are thrilled to invest in Healthx alongside Greg Bell and his team, and we look forward to working together in the company’s next phase of growth."
The Healthx investment builds on Frontier’s long-standing expertise in technology enabled business services. The transaction closed on December 28, 2011, marking the second investment for Frontier’s Fund III and 29th investment since 1999. Escalate Capital Partners provided debt financing for the transaction. Berkery, Noyes & Co., LLC served as financial advisor to Healthx.
About Healthx:
Healthx develops and manages the most widely adopted online portals and applications for the healthcare and human resources markets. We provide SaaS solutions for payers, providers, employers, and brokers. We are a leading developer of self-service communication and data integration solutions that serve more than 150 payers and 39,000 groups, representing over 12 million individual lives. For more information, please visit www.healthx.com.
About Frontier Capital:
Frontier Capital is a Charlotte-based growth equity firm focused exclusively on technology enabled business services. We partner with management teams that can benefit from capital to accelerate growth, fund acquisitions, or generate shareholder liquidity. Our investments include both minority and majority ownership positions in high growth companies with $5 million to $30 million of revenue. Founded in 1999, we seek to make $5 million to $25 million investments from Frontier Fund III. For more information, please visit www.frontiercapital.com.