(Reuters) Private equity firm Pamplona Capital Management has acquired a large stake in Spreemo, a workers’ compensation technology startup, the companies said on Monday.
Pamplona’s stake is around 50 percent, said a person familiar with the matter who declined to be identified because the terms are private.
Founded in 2010, New York-based Spreemo has a website that connects large companies and healthcare providers to manage workers’ compensation cases, focused on radiology services.
Investment in the sector is growing as patients demand greater transparency and accountability in healthcare services, and employers seek to cut medical spending.
Spreemo’s customers include large supermarket retailers, pharmacy chains and insurance carriers. It recently announced a collaboration between its research arm, Spreemo Quality Institute, and the Hospital for Special Surgery and Thomas Jefferson University.
Recent investments by private equity firms in the workers compensation sector include Apax Partners’ acquisitions of One Call Care Management, Align Networks and Genex Services, as well as KKR & Co LLP’s purchase of Mitchell International.
Pamplona, which made the investment from its fourth private equity fund, was advised by Perella Weinberg Partners. The firm has made healthcare investments in generics drugmaker Alvogen, healthcare services companies MagnaCare and Intralign and health technology company Privia Health.