Great Hill Acquires RxBenefits
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Great Hill Acquires RxBenefits

rxbenefits nf1RxBenefits, a provider of pharmacy benefits administration services to small and mid-sized, self-insured employers, has been acquired by Great Hill Partners in partnership with the company’s management team.

“RxBenefits has experienced rapid growth in recent years and has emerged as a leader in the pharmacy benefits administration space,” said Bryan Statham, CEO of RxBenefits. “We are pleased to build on this momentum by collaborating with Great Hill, a financial partner that has extensive healthcare experience and resources.”

RxBenefits’ services include management and administration, including pharmacy benefit assessment, plan contracting, plan implementation, member services, claims auditing and reconciliation, and ongoing management of pharmacy benefit plans. The company markets its services through partnerships with employee benefits consultants. RxBenefits was founded in 1995 and is headquartered in Birmingham, AL (www.rxbenefits.com).

According to Great Hill, prescription drug spending last year reached a record-breaking $374 billion, up 13 percent from 2013 representing the largest percentage increase in over a decade. New therapies and specialty drugs were the main driver of the increase. While specialty medications represent only about 1 percent of all US prescriptions, in 2014 they accounted for more than 30 percent of the total drug spend.

mark taber nf11“There has never been a more important time for employers to look at their general and specialty pharmacy strategy to see if they have optimal pricing terms and identify strategic savings opportunities,” said Mark Taber, a Managing Partner with Great Hill Partners. “With a seasoned management team, a large addressable market, a growing demand – and most importantly, a strong solution – RxBenefits is poised to continue its rapid growth trajectory.”

RxBenefits joins Great Hill’s current portfolio, which includes recent healthcare investments Qualifacts (SaaS based behavioral health EHR) and PlanSource (SaaS based employee benefits administration technology).

Great Hill invests from $25 million to $150 million of capital per transaction to finance the expansion, recapitalization or acquisition of growth companies in a range of sectors within the media/communications, Internet, business services, consumer services, financial technology, healthcare technology, software, and transaction processing sectors. Great Hill is based in Boston (www.greathillpartners.com).

RxBenefits represents Great Hill’s sixth healthcare technology investment. Prior investments include bSwift (sold to Aetna for $400 million in November 2014), Passport Health Communications (sold to Experian for $850 million in November 2013) and SterilMed (sold to Johnson & Johnson subsidiary Ethicon Endo-Surgery in September 2011).

© 2016 PEPD • Private Equity’s Leading News Magazine • 1-12-16

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