Leading Healthcare Cost Management Provider Generates Over 10X Return
PRINCETON, NJ, February 1, 2016 – Edison Partners announced today the successful exit of Premier Healthcare Exchange (PHX), a leading provider of healthcare cost management and electronic payments solutions. PHX and its subsidiary, Pay-Plus Solutions (PPS), are merging with Stratose and GlobalCare to create the next-generation leader in healthcare claims cost containment and value management. The exit generated more than 10X return and over 70% IRR for Edison Partners.
Headquartered in Bedminster, New Jersey, PHX provides advanced cost management and electronic payments solutions to health plans by combining people, process, technology, and business intelligence to deliver significant savings to their customers.
Since Edison’s initial investment in 2010, revenue and EBITDA grew by 8X and 6X, respectively. “We are grateful to Todd Roberti (CEO and Founder) and the entire PHX management team, whose combined strategic vision and relentless execution created a market leader with incredible growth and an exceptional return for all stakeholders,” said Chris Sugden, Managing Partner of Edison Partners and PHX board member. Sugden and Lenard Marcus, Partner, led the investment.
“We are extremely proud of how far the company has come over the last five years with the support of the Edison team,” said Todd Roberti, PHX CEO.
Edison will maintain a minority ownership position in the new company, and Sugden is joining the board of directors. Sugden added, “This combination creates a formidable market leader in end-to-end healthcare value management, and we’re excited to continue to be a part of it.”
Edison has invested in and guided more than 20 Healthcare Information Technology businesses. Other noteworthy exits include CambridgeSoft, Cadient, Clinverse, Dendrite, DiagnosisOne, Health Market Science, iContracts, InnaPhase, Octagon, POMs, Portico and Taratec. Current Healthcare IT portfolio companies include ClearPoint Learning, Lincor Solutions and TrialScope.
Premier Healthcare Exchange (PHX) was incorporated in 2001. The company provides advanced network and cost management solutions for health plans that combine claim processing automation with professional services to deliver a timely, centralized approach to healthcare cost management. This approach results in a significant reduction in payment errors, appreciable improvement in the time needed to bring claims to resolution and in savings that substantially reduce the healthcare costs of its clients. PHX solutions are utilized by industry leading insurance companies, Taft-Hartley Funds, Health Maintenance Organizations (HMOs) and Third Party Administrators (TPAs).
About Pay-Plus Solutions
PPS (www.ppsonline.com ) delivers easy, fast and reliable electronic payments and explanation of payments to healthcare providers. The PPS system offers the options of delivering funds electronically via ACH, payment card products and Virtual Reimbursement Accounts (VRA) as well as payment data directly to healthcare Providers, via clearinghouses, FTPS or its web-based portal www.ppsonline.com. PPS is a leading system designed exclusively for healthcare which combines banking functions, claim payments and remittance, as well as, integration with traditional paper processes.
About Edison Partners
For 30 years, Edison Partners has been helping CEOs and their executive teams navigate the entrepreneurial journey and build successful companies. Through the unique combination of expansion capital and the Edison Edge platform, consisting of strategic advisory, the Edison Director Network, and executive education, Edison employs a holistic approach to nurturing invention and creating value for growth stage businesses ($5 to $20 million in revenue) in financial technology, healthcare IT, enterprise IT, and marketing software industries. Edison investment objectives also include: buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s active portfolio has created aggregate market value exceeding $5 billion. Its long-tenured team, based in Princeton, NJ, McLean, VA, and Cleveland, OH, manages more than $1 billion in assets throughout the eastern United States.