Gauge Capital has agreed to sell Veridicus Holdings LLC to Magellan Health Inc. Financial terms weren’t announced. Salt Lake City-based Veridicus provides pharmacy benefit management, medication therapy management, clinical care management, and Medicare Part D services to self-funded employers, third party administrators and plan sponsors
Gauge Capital Enters into Agreement to Sell Veridicus After Successful Growth
Gauge Capital, Company management, and other investors announced that they have entered into an agreement to sell Veridicus Holdings, LLC (“Veridicus” or “the Company”) to Magellan Health, Inc. (“Magellan”), a publically traded (NASDAQ: MGLN) healthcare management company. The Company’s management team will remain with Magellan. Closing is expected to occur in the fourth quarter of 2016.
Headquartered in Salt Lake City, Veridicus is a leading provider of pharmacy benefit management (“PBM”), medication therapy management (“MTM”), clinical care management, and Medicare Part D services to self-funded employers, third party administrators (“TPA”), and plan sponsors. The Company provides a clear value proposition to the mid-sized self-funded employer market through its transparent pricing, high touch service, and value added complementary services.
“It has been personally and professionally rewarding to work with Doug Burgoyne, Jeff Dunn, and the dedicated management team at Veridicus,” said Whitney Bowman, Partner at Gauge Capital. “Veridicus generated strong growth due to management’s excellent execution of a strong strategic vision. We look forward to seeing Veridicus continue its success.”
Doug Burgoyne, CEO at Veridicus, said, “Our team’s dedication and commitment to our customers is unparalleled in the industry. Gauge Capital was a welcome addition to the Veridicus team; their strategic guidance, support, and investment enabled us to strengthen and expand our service offering to even better serve our customers. We are well positioned for our next phase of growth with Magellan.”
Veridicus is a PBM organization with a unique set of clinical services and capabilities. Veridicus’ differentiated approach to pharmacy management leverages proprietary analytics and clinical software that integrates pharmacy, medical and lab data to drive targeted interventions resulting in better health outcomes and lower costs for complex patient populations. In addition, Veridicus owns and operates a fully licensed insurance company which is contracted with the Centers for Medicare and Medicaid Services (CMS) and serves members enrolled in the Medicare Part D Employer Group Waiver Plan (EGWP) program.
About Gauge Capital
Gauge Capital is a private equity firm that partners with owners, managers and equity stakeholders of successful middle market companies to maximize their potential. Gauge Capital focuses on investing in growing businesses in the business and consumer services, healthcare services, and food services sectors. For more information, please contact Andrew Peix, Principal and Director of Business Development at firstname.lastname@example.org or Whitney Bowman, Partner at email@example.com.