Summit Partners has completed its investment in CareCentrix Inc., a provider of home healthcare benefits management services. The funding is designed to fund continued growth and development of new products. Water Street Healthcare Partners, which bought the company in 2008, will continue to hold a stake going forward. Specific terms of Summit’s investment were not released.
Growth equity investor Summit Partners today announced that it has completed its investment in CareCentrix, Inc., a provider of home healthcare benefits management services. The investment will support CareCentrix’s rapid growth and fund the continued development of new product offerings. Certain shareholders, including Water Street Healthcare Partners, will retain an ownership position in the company going forward. Water Street Healthcare Partners purchased the company in 2008 and, in conjunction with management, more than doubled the business in less than three years. Terms of the transaction were not disclosed.
Founded in 1996, CareCentrix works on behalf of its health plan customers to coordinate members’ care, improve quality and service, and lower costs in home nursing, home infusion and home medical equipment. The company has expanded its services to include home-based sleep benefit management through its acquisition of Sleep Management Solutions and hospital readmission reduction through its HomeSTAR program. CareCentrix serves more than 30 million people through its network of 7,000 credentialed home care providers across the United States, and has customer care centers located across the country.
Eric Reimer, CEO of CareCentrix, said, “The investment by Summit Partners is a validation of CareCentrix’s leadership position within the healthcare benefits management industry. Summit has deep expertise and a strong track record in healthcare services as well as a history of investing in rapidly growing companies like CareCentrix. Summit’s support will help us continue to provide outstanding service and innovative products to our customers.”
Dr. Craig Frances, Peter Connolly and Michael Anderson from Summit Partners will join the CareCentrix Board of Directors. Dr. Frances said, “CareCentrix is the market leader in providing health plans with a national solution to effectively manage their home healthcare costs. By coordinating care in the home, the lowest-cost venue in our healthcare system, CareCentrix improves quality, reduces cost, and provides service in the preferred setting for patients. The company’s HomeSTAR program, which is a proven means for preventing avoidable hospital readmissions, is a great example of this. We look forward to working closely with the talented management team and continuing shareholders in the years to come.”
About CareCentrix, Inc.
CareCentrix (www.carecentrix.com) is the nation’s leading benefits management company focused on effectively managing home-based care. Headquartered in East Hartford, Connecticut, the company offers a full range of services including coordination of home nursing, home infusion, home medical equipment and sleep testing. The company also offers a program, HomeSTAR, which reduces the number of hospital readmissions. CareCentrix serves more than 30 million people through its national network of 7,000 credentialed home healthcare providers, with customer care centers located across the United States.
About Summit Partners
Summit Partners (www.summitpartners.com) is a growth equity firm that invests in rapidly growing companies. Summit seeks outstanding management teams that have built their companies to profitability and market leadership, and provides capital for growth, recapitalizations and management buyouts. Founded in 1984, Summit has invested in more than 330 growing companies across a range of geographies and industries including technology, education, business services, healthcare, consumer and industrial products, among many others. With offices in Boston, London and Palo Alto, Summit has raised more than $11 billion in capital since inception.
In the United States of America, Summit Partners operates as an SEC-registered investment advisor. In the United Kingdom, this document is issued by Summit Partners Limited, a firm authorized and regulated by the Financial Services Authority. Summit Partners Limited is a limited company registered in England and Wales with company number 4141197, and its registered office is at 20–22 Bedford Row, London, WC1R 4JS, UK. This document is intended solely to provide information regarding Summit Partners’ potential financing capabilities for prospective portfolio companies.