August 14, 2012
GREENWICH, CT and BROOKFIELD, WI – Connecture, the leader in sales automation technology for the health insurance industry, today announced that Great Point Partners, LLC, a Greenwich, CT.-based private investment firm focused on the health care industry, has led a growth recapitalization in Connecture. The investment will enable Connecture to meet the demand from states for the creation of health insurance exchanges as mandated by the Patient Protection and Affordable Care Act, in addition to supporting Connecture’s ongoing investment in software innovation in the health plan, broker, and insurance exchange markets.
In addition to projected revenue growth in excess of 50% for 2012, this investment adds additional business momentum to Connecture, which recently announced its role in the development of health insurance exchanges in Maryland and Minnesota, an effort which requires it to hire more than 100 Java developers and its move to a larger facility in Brookfield, Wisconsin. Since its founding in 1997, Connecture has established itself as the leading developer of software designed to streamline and simplify the health insurance distribution process. More than half of the nation’s 20 largest health insurance plans use Connecture’s technologies and more than 25 million Americans purchase their health insurance on systems built by Connecture.
“The Great Point team has the health care technology and payer sector domain expertise to complement and support our strategic vision as a company, which is to eliminate the friction in the health insurance purchasing process,” said Doug Schneider, Connecture CEO. “In the immediate term, this investment will enable Connecture to accelerate building out its capacity and help states, brokers and health plans meet the deadlines associated with health care reform with the best sales automation products in the market.”
As part of the investment, the following Great Point team members will join Schneider on Connecture’s board of directors: David Kroin, Managing Director; Adam Dolder, Managing Director; Joe Pesce, Managing Director; and Brett Carlson, Vice President.
“Connecture has developed tools for the modern day health plan,” said Brett Carlson of Great Point Partners. “With the depth of their product offering and leadership position in the sales automation market, Connecture’s technology effectively connects consumers, health plans, employers and brokers to the new health insurance marketplaces being developed by the States and in the private sector.”
About Great Point Partners
Great Point Partners, based in Greenwich, Conn., is a leading health care investment firm with approximately $450 million of equity capital under management. The firm manages capital in public (the Biomedical Value Fund) and private equity funds (GPP I – a $156 million private equity fund). Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 100 health care companies. The private equity fund invests in profitable companies across all sectors of the health care industry including behavioral health, biologics manufacturing, health care services, hospital outsourcing, information technology, life sciences, media and reagents, medical devices, rehabilitation, specialty pharmaceuticals, and workers compensation. The firm pursues a proactive and proprietary approach to sourcing investments. Reach Great Point at 203.971.3300 or www.gppfunds.com.
Connecture is the leading provider of Web-based technologies used to create health insurance marketplaces and exchanges. Its industry-proven solutions effectively assist consumers and employees with the health insurance shopping and purchasing process and minimize back-office administrative tasks, such as workflow and health plan management, application processing, renewal processing and integration with health plans and state and federal programs. More than 25 million Americans purchase their health insurance through systems built by Connecture and more than half of the nation’s 20 largest plans rely on Connecture’s technologies and services to sell, administer and manage their plans and products effectively. For more information, visit www.connecture.com.
This document is intended solely to provide information regarding Great Point Partners’ potential financing capabilities for prospective portfolio companies.