On November 22, Edifecs, Inc. announced that it has signed a definitive agreement to acquire Health Fidelity, a leading provider of risk adjustment solutions for the value-based care era. The acquisition is expected to close in mid-December of this year, pending regulatory approval.
Founded in 1996, Edifecs is a premier technology company in the United State healthcare market with solutions focused on interoperability, workflows, value-based care payments and analytics. The company is headquartered in Bellevue, Washington, with additional offices in Atlanta, Georgia and Mohali, India, an engineering center in Moldova and has more than 750 employees globally.
Health Fidelity is a San Mateo, California healthcare tech start-up that was founded in 2011. The company offers risk adjustment and quality solutions for healthcare organizations participating in risk-based payment programs. Using groundbreaking natural language processor (NLP) and analytics technology, Health Fidelity’s risk management solutions are changing the way risk is identified, quantified and optimized for organizations that participate in Medicare Advantage, Commercial/ACA, Medicare ACO and Medicaid programs.
In July 2020, Edifecs was acquired by TA Associates and Francisco Partners in a $1.8 million deal that was meant to help Edifecs bring technology to the market at an accelerated pace to capitalize on the value-based healthcare market. TA Associates is a global growth private equity firm that has raised $33.5 billion in capital since it was founded in 1986.
The other acquirer in the 2020 sale, Francisco Partners, is a private equity firm that specializes in investments in technology and technology-enabled businesses. Francisco Partners has raised more than $24 billion in committed capital and invested in more than 300 technology companies.
This acquisition underscores Edifecs’ growth strategy to become an industry leader in risk adjustment. The combination of these technologies will enable Edifecs to provide a seamless risk adjustment solution without requiring its customers to pay for costly integrations and multi-vendor management overhead.
Cain Brothers served as exclusive financial advisor to Health Fidelity in connection with the transaction.
