Edifecs, a 24-year-old healthcare software maker based in Bellevue, Wash., today announced a fresh cash infusion from private equity firms TA Associates and Francisco Partners.
Financial terms were not disclosed. The deal is expected to close in the third quarter.
Sunny Singh, founder and CEO, originally started Edifecs in a garage as a startup that provided technology solutions for integration problems. In 2001, Edifecs entered the healthcare industry, as it saw opportunities to help customers with transaction and information processing, particularly as communication documents moved from printed paper to computers.
Edifecs now sells enterprise software to more than 350 healthcare companies including BlueCross BlueShield, Cigna, Humana, GroupHealth, and others. It focuses on enabling interoperability of data, ensuring compliance, unifying clinical and financial information, and more. The company recently launched a a COVID-19 dashboard to help payers analyze COVID-19 testing claims data.
“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,” Singh said in a statement. “The investment from TA Associates and Francisco Partners will help Edifecs catalyze this transformation, innovate faster and bring technology to market quicker to meet the demands of our customers.”
Edifecs will add three new board members as a result of the funding: Ashutosh Agrawal, managing director at TA Associates; Ezra Perlman, co-president of Francisco Partners; and Ali Evans, vice president at Francisco Partners.
“As stakeholders in the U.S. 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,” Agrawal said in a statement. “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.”
Edifecs employs more than 600 people across Bellevue, Atlanta, Ga., Mohali, India, and Moldova.
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