Healthcare technology company Zipari has agreed to be acquired by Thoma Bravo in a deal valuing the business at more than half a billion dollars. Zipari will be combined with Healthx. TripleTree LLC advised Zipari in the transaction, while Brentwood Capital Advisors LLC advised Healthx.
NEW YORK – December 21, 2020 – Zipari, the company behind the first and only consumer experience platform built specifically for health insurance, today announced a strategic growth investment from Thoma Bravo, a leading private equity investment firm focused on the software and technology-enabled services sector. Through this investment valuing the company at more than half a billion dollars, Zipari will combine with Healthx, a provider of trusted healthcare engagement technologies, to create the leading CX platform and solutions for health insurance payers and third-party administrators. Mark Nathan, Founder and CEO of Zipari, will continue to lead the business. The company will remain headquartered in Brooklyn, New York.
Zipari will now serve nearly 200 clients with a suite of more than 20 products designed to help payers lower healthcare costs and improve ROI by ensuring an efficient and meaningful connection between payers, members and providers.
Through its investment and expertise in healthcare IT, Thoma Bravo expects to play a central role in accelerating Zipari’s growth strategy. Thoma Bravo will partner with Zipari to strengthen client success and delivery, broaden the company’s products and solutions, drive faster innovation and further expand the company’s combined customer base.
“This is an exciting day for Zipari and the culmination of six years of evolution and innovation for healthcare payers. We are very excited to begin our next chapter of growth,” said Mark Nathan, CEO of Zipari. “I’m especially excited to welcome new colleagues from Healthx and the talent and expertise they bring to our combined company. This transaction opens up new opportunities for our clients and enables payers and TPAs of all sizes to create breakthrough experiences for their consumers. We look forward to working closely with Thoma Bravo as we develop a strategic roadmap for integration and migration that advantages our clients and addresses the diverse needs of the marketplace.”
“We are excited to join Zipari and move our common mission forward,” said Mark Rapoport, Healthx CEO. “This combination will offer our clients the most comprehensive platform in the market and our team looks forward to working together to deliver just that.”
“At a time when healthcare accessibility is so important, the combination of two premier healthcare IT platforms will allow payers to have the technology they need to improve health outcomes and deliver great experiences for their consumers,” said AJ Jangalapalli, a Principal at Thoma Bravo. “We look forward to applying Thoma Bravo’s capital and significant experience in healthcare technology to support Zipari as it continues to grow and deliver innovative products to its newly expanded client base.”
“We are thrilled to be partnering with Zipari at this pivotal moment in the company’s growth journey,” said Hudson Smith, a Partner at Thoma Bravo. “This strategic growth investment represents a powerful combination of industry leading healthcare IT platforms that drive better consumer experiences in healthcare.”
“Zipari has been at the forefront of innovation in consumer experience for healthcare payers for years,” said Saurabh Bhansali, a Partner at Health Velocity Capital. “We are eager to continue our partnership with Mark and his team, as well as with Thoma Bravo to keep solving some of the toughest challenges facing payers and consumers today.”
Dave Schwab, Founder and Managing Director of Vertical Venture Partners, an original investor in Zipari added, “Zipari’s success illustrates the power of a vertical cloud solution, built specifically for the payer market.”
TripleTree LLC served as exclusive financial advisor to Zipari in the transaction. Brentwood Capital Advisors LLC served as the exclusive financial advisor to Healthx. Kirkland & Ellis LLP served as legal advisor to Thoma Bravo and Goodwin Procter LLP served as legal advisor to Healthx and JMI Equity. Financing for the transaction was provided by certain funds and accounts managed by The Private Credit Group of Goldman Sachs Asset Management L.P.
Based in Brooklyn, New York, Zipari is a healthcare technology company that develops products for health insurance carriers to engage with consumers in new and innovative ways. With unsurpassed technology, Zipari’s products provide real-time insights at every touchpoint, delivering value to health insurance payers with breakthrough experiences for all of their consumers. Zipari serves more than 40 million members via their payer and TPA customers. For more information about Zipari, please visit www.zipari.com
About Thoma Bravo
Thoma Bravo is a leading private equity firm focused on the software and technology-enabled services sectors. With more than $73 billion in assets under management as of September 30, 2020, Thoma Bravo partners with a company’s management team to implement operating best practices, invest in growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings, with the goal of increasing the value of the business. The firm has offices in San Francisco and Chicago. For more information, visit thomabravo.com.