Overview of the Deal
- Acquirer: Blackstone
- Target: HealthEdge Software
- Total Transaction Size: Not publicly disclosed
- Announcement Date: March 9, 2020
- Expected Close Date: April 13, 2020
- Target Advisors: Morgan Stanley & Co. LLC (Financial); Goodwin Procter LLP (Legal)
- Acquirer Advisors: TripleTree (Financial); Debevoise & Plimpton LLP (Legal)
On March 9, 2020, Blackstone announced its agreement to acquire a majority stake in HealthEdge Software, a leading healthcare technology company that delivers next-generation Core Administrative Processing Systems (CAPS) solutions to customers across the healthcare ecosystem. The transaction was completed on April 13, 2020.
Company Details (Acquirer – Blackstone)
Blackstone is one of the world’s leading investment firms, with $1.1 trillion in assets under management as of December 31, 2024. The firm invests across a range of asset classes, including private equity, real estate, credit, and hedge funds.
- Founded: 1985
- Headquarters: New York, New York, USA
- CEO: Stephen A. Schwarzman
- Assets Under Management: $1.1 trillion (as of December 31, 2024)
- Recent Transactions:
- Acquisition of a majority stake in HealthEdge Software (2020)
- Acquisition of a majority stake in Medline Industries (2021)
Company Details (Target – HealthEdge Software)
HealthEdge provides next-generation, mission-critical CAPS solutions to health payors, helping them better administer benefits, configure plans, manage providers, and enroll participants. The company’s products are designed to help clients succeed in a rapidly changing healthcare environment.
- Founded: 2004
- Headquarters: Burlington, Massachusetts, USA
- CEO: Steve Krupa
- Number of Employees: Not publicly disclosed
- Annual Revenue: Not publicly disclosed
Projections and Assumptions
Short-Term Consequences
The acquisition by Blackstone is expected to provide HealthEdge with additional resources and expertise to accelerate its growth and enhance its product offerings. The partnership aims to strengthen HealthEdge’s position as a leading provider of healthcare technology solutions.
Long-Term Upsides
With Blackstone’s support, HealthEdge is positioned to expand its market reach and continue developing innovative solutions that address the evolving needs of healthcare payors. The collaboration is anticipated to drive long-term value for both companies and contribute to advancements in healthcare technology.
Risks and Uncertainties
Potential risks include integration challenges, market competition, and the need to adapt to regulatory changes in the healthcare industry. Both companies will need to navigate these challenges to realize the full benefits of the partnership.
Sources
- https://www.blackstone.com/news/press/blackstone-to-acquire-healthedge-a-leading-healthcare-technology-solutions-provider/
- https://www.blackstone.com/news/press/blackstone-completes-acquisition-of-healthedge-software-a-leading-healthcare-technology-solutions-provider-2/
- https://www.nasdaq.com/press-release/blackstone-to-acquire-healthedge-a-leading-healthcare-technology-solutions-provider
- https://www.nasdaq.com/press-release/blackstone-completes-acquisition-of-healthedge-software-a-leading-healthcare-technology
- https://www.fool.com/investing/2020/03/09/private-equity-giant-blackstone-buys-stake-in-heal.aspx
