Secure EDI, a Charlotte, N.C.-based healthcare IT company, has raised $40 million in growth equity funding from Abingworth.
Abingworth, the international investment group focused on life sciences and healthcare, today announced that it has made a significant growth equity investment in Secure EDI. The recapitalisation will provide some liquidity for early investors in the Company as well as provide additional equity capital for investment in the business and additional acquisitions. Abingworth is partnering with current management led by CEO Barry Byrd to continue to build the Company.
Secure EDI, based in North Carolina, US, is a healthcare transactions integrator, creating electronic interfaces between medical and dental providers and payors. The company’s suite of Web-based services increases efficiency and helps to reduce costs through real-time adjudication of claims, electronic funds transfers, on-line reconciliation and data mining and informatics. The Company currently operates in the US and Puerto Rico.
Abingworth Partners, Michael F. Bigham and David J. Mayer joined Secure EDI’s Board at completion of the transaction. David Mayer commented: “Abingworth looked at a number of revenue cycle management transactions over the past few years but chose to invest in Secure EDI because it offered payors, providers and third-party administrators a robust single platform technology solution at a great price. Further, the Company’s software as a service (SaaS) business model requires little, if any, upfront capital outlay, which is a strong selling point in light of current economic pressures.”
Barry Byrd, Secure EDI’s President and CEO, said: “The management team at Secure EDI including partners, Jose Angeles and Severiano Lopez-Marrero, are excited to have both Michael and Dave become investors and fellow Board members. Secure EDI continues to see a number of compelling channels for further growth and we welcome our new partners to help us implement future growth initiatives and support further acquisitions.”
Michael F. Bigham, who is Chairman of the Board, stated: “Our investment in Secure EDI further demonstrates Abingworth’s ongoing commitment to build out our growth equity investment practice. The senior team at Secure EDI has demonstrated an ability to deliver strong and profitable revenue growth over the past few years. We are confident in their ability to drive the Company’s growth well into the future.”
The investment was made from Abingworth’s growth equity fund, Abingworth Bioventures V Co-Invest Growth Equity Fund LP (AGE), and Abingworth Bioventures V. This investment is the third growth equity investment made from the AGE Fund. The earlier growth equity investments were in public companies: Amarin Corporation, which is developing a prescription grade omega-3–based drug for treating elevated triglycerides in patients at risk of coronary events; and a more recent investment in Epigenomics, which has launched a blood test for the early detection of colorectal cancer in Europe.
Notes for Editors
Abingworth is an international investment group dedicated exclusively to the life sciences and healthcare sector. The company invests at all stages of development including early and late-stage venture financing, growth equity and public companies.
Founded in 1973, Abingworth has a lengthy track record of backing market leading companies. Abingworth has a specialist team of over 20 professionals with a broad range of skill sets and access to an extensive network of industry contacts. Abingworth has funds under management of over $1.25 billion and offices in London, Menlo Park (California) and Boston.
Abingworth Bioventures V Co-Invest Growth Equity Fund LP
Abingworth Bioventures V Co-Invest Growth Equity Fund LP is an affiliated fund to Abingworth Bioventures V LP. The funds co-invest in growth equity companies in Europe and the US and, together, total £392 million. Growth equity deals are often later stage with significantly larger capital requirements than venture capital companies and may involve making investments of up to £40 million in a single company.
About Secure EDI
Secure EDI is a Healthcare IT firm that is pioneering electronic solutions for enhancing the efficiency and the quality of health and dental care. Based on proven platforms, Secure EDI assures seamless interfaces among healthcare and dental providers and payers. Secure EDI capabilities include on-line coverage verification, real time adjudication of claims, electronic funds transfer, on-line reconciliation and a full range of informatics for payers and providers.