Thoma Bravo, a private equity investment firm focused on the software and technology-enabled services sector, supported Zipari’s combination with Healthx through an investment valuing the company at more than half a billion dollars.
Financing for the transaction was provided by certain funds and accounts managed by the private credit group of Goldman Sachs Asset Management.
Through this investment, Zipari will combine with Healthx, a provider of healthcare engagement technologies, to create a CX platform and solutions for health insurance payers and third-party administrators.
Mark Nathan, founder and CEO of Zipari, will continue to lead the business, with the company’s headquarters remaining in Brooklyn, NY.
Zipari will now serve nearly 200 clients with a suite of more than 20 products.
“This is an exciting day for Zipari and the culmination of six years of evolution and innovation for healthcare payers. We are very excited to begin our next chapter of growth,” Nathan said. “I’m especially excited to welcome new colleagues from Healthx and the talent and expertise they bring to our combined company. This transaction opens up new opportunities for our clients and enables payers and TPAs of all sizes to create breakthrough experiences for their consumers. We look forward to working closely with Thoma Bravo as we develop a strategic roadmap for integration and migration that advantages our clients and addresses the diverse needs of the marketplace.”
“We are excited to join Zipari and move our common mission forward,” Mark Rapoport, CEO of Healthx, said. “This combination will offer our clients the most comprehensive platform in the market and our team looks forward to working together to deliver just that.”
“At a time when healthcare accessibility is so important, the combination of two premier healthcare IT platforms will allow payers to have the technology they need to improve health outcomes and deliver great experiences for their consumers,” AJ Jangalapalli, principal at Thoma Bravo, said. “We look forward to applying Thoma Bravo’s capital and significant experience in healthcare technology to support Zipari as it continues to grow and deliver innovative products to its newly expanded client base.”
“We are thrilled to be partnering with Zipari at this pivotal moment in the company’s growth journey,” Hudson Smith, partner at Thoma Bravo, said. “This strategic growth investment represents a powerful combination of industry leading healthcare IT platforms that drive better consumer experiences in healthcare.”
“Zipari has been at the forefront of innovation in consumer experience for healthcare payers for years,” Saurabh Bhansali, a partner at Health Velocity Capital, said. “We are eager to continue our partnership with Mark and his team, as well as with Thoma Bravo, to keep solving some of the toughest challenges facing payers and consumers today.”
“Zipari’s success illustrates the power of a vertical cloud solution, built specifically for the payer market,” Dave Schwab, founder and managing director of Vertical Venture Partners, an original investor in Zipari, said.
TripleTree served as exclusive financial advisor to Zipari in the transaction. Brentwood Capital Advisors served as the exclusive financial advisor to Healthx. Kirkland & Ellis served as legal advisor to Thoma Bravo and Goodwin Procter served as legal advisor to Healthx and JMI Equity.