Marks Edison’s fifth in the healthcare IT sector over the last six months
PRINCETON, NJ. (January 14, 2020)—Edison Partners, the growth equity firm, today announced leading a $5 million investment in Ringmaster Technologies, a market leader in workflow optimization for the healthcare stop-loss industry. The investment is Edison’s second with Todd Roberti, founder and CEO of Ringmaster, and represents the fifth healthcare technology sector investment for Edison Partners in six months. The funds will help develop Ringmaster’s go-to-market engine for its cloud solutions that modernize the quoting and administration processes for brokers, agencies, third-party administrators, MGUs and carriers of stop-loss policies.
Cleveland-based Ringmaster solves for the massive inefficiencies in the stop-loss insurance industry resulting from outdated systems used to manage the complex quoting and administration processes. The company offers the first fully automated optimization solution of customizable workflows, quoting and smart contracts, and advanced data and analytics to simplify the administration of stop-loss plans, a critical component of self-funded health plans now utilized by 60% of U.S. employers with premiums doubling to over $19 billion in the last five years. Ringmaster works with leading adjudication platforms and is building integration feeds to eliminate a substantial amount of human intervention in the existing ecosystem.
“We’re thrilled to again partner with Todd Roberti, an accomplished leader who has demonstrated the intensity and motivation required to win. We know from the experience of over 230 investments the importance of an accomplished CEO in driving the success of a company looking to scale. With Ringmaster, Todd has again identified a large and untapped market opportunity and is very quickly creating a leadership position and product market fit with differentiated technology," said Gregg Michaelson, Partner, Edison Partners, who led the investment and joined the Ringmaster board.
Roberti is one of the most successful CEOs ever to team up with Edison Partners. He was the founder of Premier Healthcare Exchange (PHX), a prior Edison investment, and Pay-Plus Solutions. The companies were acquired by Parthenon Partners to form Zelis Healthcare. Additionally, Edison invested in Zelis, which merged with RedCard in September 2019 to create the industry’s leading healthcare payments optimization platform at a valuation of nearly $6 billion, according to Bloomberg. Combined, the companies returned over 40X to Edison Partners—the largest return in the firm’s 33-year history.
"We as a nation focus, and rightfully so, on improving clinical care and the cost of providing care. Much of the wasted cost in healthcare, however, actually ties to the administrative complexity that hits the medical costs line on a company’s P&L. Operating expenses must ultimately be addressed simultaneously to clinical care: They are inextricably linked and impact care much more than we care to admit,” said Todd Roberti, Ringmaster Technologies founder and CEO.
Roberti added: “We saw an opportunity to explore new technology and create automated solutions to drive greater value and growth across the entire healthcare industry’s business chain. I returned to Edison Partners based on our previous success together and, more specifically, the specialized expertise they provide at the board level and with their operating acumen. I’m excited to partner with the firm and again become a critical component of the complex healthcare ecosystem.”
Healthcare IT has been the most active investment area for Edison Partners in the last six months, with investments across non-clinical cost optimization, patient engagement, and data and analytics, among key verticals. New 2019 investments included Capital Rx, Health Recovery Solutions (HRS), PurpleLab, and VirtualHealth. In addition to Zelis, past noteworthy Healthcare IT exits for the firm also include Dendrite, Cadient, Health Market Science, and Verilogue.
In all, Edison Partners has financed and guided more than 230 private companies since 1986. To learn more visit www.edisonpartners.com.
About Ringmaster Technologies
Ringmaster is a cloud-based healthcare solutions provider created to simplify and enhance administrative processes by utilizing cutting edge technologies. Combining over a decade of expertise in both the healthcare and technology industries, RMT offers the first Fully Automated Workflow Optimization Solution that will drastically slash processing time and complexity while minimizing the turnaround time for stop-loss quoting, contracting and policy administration. To learn more, visit www.ringmastertech.com.
About Edison Partners
For more than 30 years, Edison Partners has been helping CEOs and their executive teams grow and scale successful companies. The firm’s investment team brings extensive investing and operating experience to each investment. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, the Edison Director Network, and executive education programs, Edison employs a truly integrated approach to accelerating growth and creating value for businesses. A team of experts in financial technology, healthcare IT and enterprise solution sectors, Edison targets high-growth companies with $5 to $25 million in revenue; investments also include buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners is based in Princeton, NJ and manages more than $1.4 billion in assets throughout the eastern United States.