It’s been 10 years since HealthEdge got its start and the healthcare software company is still standing. But that doesn’t mean it’s been standing still.
Burlington, Mass.-based HealthEdge last week closed on $30 million in new venture funding, according to a regulatory filing. So far, the company hasn’t said how it plans to spend its new wealth, although recent industry events will likely dictate some of those strategy decisions.
HealthEdge’s primary offering is HealthRules, a software suite providing healthcare payers with an integrated financial, administrative and clinical platform. Rivals include Siemens Medical Solutions USA, the Malvern, Pa-based healthcare IT subsidiary of German conglomerate Siemens (NYSE:SI), and private equity-backed TriZetto Corp., which 2 weeks ago agreed to a $2.7 billion buyout offer from Cognizant Technology Solutions (NSDQ:CTSH).
HealthEdge refinanced its credit facility last year, securing a new $17.5 million term loan from 5th Street Finance Corp, while Silicon Valley Bank provided HealthEdge with an undisclosed revolving loan. At the time, CEO and co-founder Rob Gillette said the new borrowing capacity would support fresh growth initiatives, taking advantage of "the tremendous market opportunity for HealthEdge."
Previous equity rounds included a pair of $3.5 million equity rounds in July 2009 and June 2010, respectively, along with a $13 million round led by Psilos Group Managers in April 2007.
The company had its start in November 2004 using technology salvaged from the ashes of Lexington, Mass.-based DeNovis Inc., a software burnout that shut down the prior month after burning through $125 million in VC financing.
Psilos also owed a piece of DeNovis, where Gillette was a senior executive. The New York-based venture-capital firm bankrolled HealthEdge’s asset purchase for an undisclosed sum in 2005 – although, presumably, it was a relative bargain. The company also closed on $3 million in debt financing later that year, according to regulatory filings.
HealthEdge announced its purchase of Click4Care in late 2012, a deal combining 2 software firms targeting healthcare payers that were both backed by Psilos. Ohio-based Click4Care’s flagship product was ThinkHealth, providing predictive modeling along with disease and care management functions, while the HealthEdge suite previously focused largely on streamlining administrative and financial aspects of payers’ businesses.
In addition to his responsibilities at HealthEdge, Gillette previously had taken on CEO duties at Click4Care in June 2009, although the firms continued to operate independently, with separate boards of directors and management teams until the December 2012 merger.
