Healthcare payments technology leaders Zelis Healthcare (“Zelis”) and RedCard Systems (“RedCard”) today announced the successful completion of their previously announced merger. The combined company provides market-leading technology and solutions to over 700 payers and 600,000+ providers to price claims, pay claims and explain claims, all at enterprise scale on a claim-by-claim basis.
The merger was supported by Parthenon Capital, a growth-oriented private equity firm and an existing investor in both Zelis and RedCard, and by Bain Capital Private Equity and Bain Capital Ventures. Financial terms of the private transaction were not disclosed.
Goldman Sachs served as financial advisor to Zelis and RedCard. Deutsche Bank served as financial advisor to Bain Capital. Kirkland & Ellis served as transaction counsel to Zelis and RedCard. Ropes & Gray served as legal counsel to Bain Capital.
About Zelis Healthcare
Zelis Healthcare (zelis.com) is a healthcare and financial technology growth company and a leading provider of integrated healthcare cost management and payments solutions including network analytics, network access, network cost management, payment integrity and electronic payments, serving payers, healthcare providers and consumers in the medical, dental and workers’ compensation markets nationwide.
RedCard Systems (redcard.com) is a leading provider of healthcare payments and communications optimization. RedCard’s gateway technology drives effective communications between healthcare payers, providers and consumers, delivering mission critical claims, payments, benefits and individual financial responsibility information via secure communication modalities. RedCard has redefined the way that healthcare communications work, coordinating communication schedules and driving efficiencies within the healthcare payer and provider communication process, while delivering faster, more efficient and effective claims and payment outcomes.
About Bain Capital Private Equity
Bain Capital Private Equity (www.baincapitalprivateequity.com) has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of approximately 240 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 19 offices on four continents. The firm has made primary or add-on investments in more than 850 companies since its inception. In addition to private equity, Bain Capital invests across asset classes including credit, public equity, venture capital and real estate, managing approximately $105 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.
About Bain Capital Ventures
Bain Capital Ventures (www.baincapitalventures.com) partners with disruptive founders to accelerate their ideas to market. The firm invests from seed to growth in startups driving transformation across industries, from SaaS, infrastructure software and security to fintech and healthcare to commerce and consumer tech. The firm has helped launch and commercialize more than 240 companies, including DocuSign, Jet.com, Kiva Systems, Lime, LinkedIn, Rapid7, Redis Labs, Rent the Runway, Rubrik, SendGrid and SurveyMonkey. Bain Capital Ventures has $5.2 billion in assets under management with offices in San Francisco, New York, Boston and Palo Alto. Follow the firm via LinkedIn and Twitter.
About Parthenon Capital
Parthenon Capital is a leading growth-oriented private equity firm with offices in Boston, San Francisco and Austin. Parthenon utilizes niche industry expertise and a deep execution team to invest in growth companies in service and technology industries. Parthenon seeks to be an active and aligned partner to management, either through recapitalization transactions or by backing new executives. Parthenon has particular expertise in financial and insurance services, healthcare and business services, but seeks any service, technology or delivery business with a strong value proposition and proprietary know-how.