January 15, 2013
GREENWICH, CT and BROOKFIELD, WI — Great Point Partners I Portfolio Company, Connecture, Inc., the leader in sales automation technology for the health insurance industry, announced the significant milestones achieved by the company and its employees in 2012. The company more than doubled its sales in a year marked by dramatic growth.
“In the 15 years since the founding of Connecture, our commercial off-the-shelf information systems earned a reputation among the nation’s health plans for uncompromising reliability, the flexibility for customization they need, and the ease of use consumers demand when purchasing health insurance online,” said Dan Maynard, President and co-founder of Connecture. “Now we’re doing the same thing in the marketplace for public exchanges.”
More than 25 million Americans shop for health insurance on information systems built by Connecture. Some of the many milestones achieved by Connecture this year include:
- Sales growth: Connecture more than doubled its sales in 2012 – closing the year with sales of $87 million. The company expects to continue on a similar trajectory in 2013.
- Significant growth investment: In August, Great Point Partners, LLC, a Greenwich, CT-based private equity firm focused on the health care industry, completed a $20 million growth recapitalization of Connecture.
- New customer signings: Connecture signed several new carriers to its growing customer base, which now includes health plans in all 50 states that cumulatively comprise nearly half of the country’s health insurance industry. In addition, Connecture won contracts to provide the core shopping and enrollment functions for the state exchanges in Maryland and Minnesota – two of the first states to move forward with the creation of exchanges that fulfill the requirements of the Affordable Care Act.
- New support for Blue Cross & Blue Shield plans: In August, Topaz Shared Services, LLC, (Topaz) announced it would use Connecture’s InsureAdvantage in its shared services offering.
- Product innovations: Connecture introduced InsureAdvantage for Private Exchanges – a Web-based platform that empowers health plans to help employers lower the costs associated with health benefits– all while making it possible for consumers to shop for and enroll in the right plan with confidence. Connecture also introduced a new Health Plan Management module of StateAdvantage, the company’s commercial off-the-shelf product suite that enables states to efficiently create and operate consumer-friendly health insurance exchanges.
- Job creation: In 2012, Connecture hired 100 people and continues to fill openings for numerous new positions at all of its locations, including Atlanta, Georgia, Brookfield, Wisconsin and Farmington, Connecticut. Available jobs can be viewed at http://www.connecturejobs.com.
- Investment in talent: Connecture appointed Doug Schneider, a veteran executive with nearly two decades of experience leading high-growth healthcare companies – including Medstat, Thomson Healthcare, and Thomson Reuters Healthcare – as CEO.
“Whether you’re a health insurance payer, a state, a corporation, a small business, a broker or a consumer, there’s universal agreement that the health insurance purchasing process is needlessly expensive and complex,” said Schneider. “Our Web-based platforms remove the unnecessary costs and friction. Health insurance is by its nature complex – one size does not fit all – but buying and selling it doesn’t have to be.”
About Great Point Partners
GPP, based in Greenwich, CT, is a leading health care investment firm with approximately $600 million of equity capital under management. The Connecture investment was made from GPP I, a fully committed $156 million lower middle market buy-out fund. GPP is currently investing from GPP II, which is targeted at $200 million.
Great Point manages capital in public and private equity funds. Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 100 health care companies. Both the private and public funds invest across all sectors of the health care industry including behavioral health, biologics manufacturing, life sciences, health care services, hospital outsourcing, information technology, medical devices, specialty pharmaceuticals, and workers compensation. The firm pursues a proactive and proprietary approach to sourcing investments. Reach Great Point at 203.971.3300. www.gppfunds.com
Connecture is the leading provider of Web-based information systems used to create health insurance marketplaces and exchanges. Its industry-proven solutions enable consumers, employers and brokers to more easily shop for, purchase and renew health insurance while minimizing back-office administrative expenses for health plans. Connecture’s solutions are provided to health plans, state insurance exchanges, private exchanges and insurance brokers. Half of the nation’s 20 largest plans rely on Connecture to sell, administer and manage their plans and products effectively. For more information, visit www.connecture.com.