Bain Capital has agreed to acquire HealthEdge, a healthcare IT solutions provider, from Blackstone. The transaction, announced on April 8, 2025, is expected to close during the second quarter of 2025, subject to customary closing conditions.
The deal is valued at approximately $2.6 billion including debt, representing a 30x multiple of HealthEdge’s $86 million EBITDA. This acquisition aligns with Bain Capital’s strategic focus on healthcare IT investments and marks a successful exit for Blackstone, which acquired HealthEdge in 2020 for approximately $700 million.
About HealthEdge
HealthEdge provides healthcare IT solutions, including Core Administrative Processing Systems solutions to health payors. Founded in 2005 and headquartered in Burlington, Massachusetts, HealthEdge offers a SaaS platform that connects health plans, providers and patients with a suite of end-to-end digital solutions. These solutions help automate operations, reduce administrative costs and improve overall health outcomes. The company currently serves more than 115 health plans representing more than 110 million covered member lives across the United States.
About Bain Capital
Bain Capital is a global private equity firm with more than $185 billion under management across several asset classes, including private equity, venture capital, public equity and credit products. The company has 1,850 employees in 24 offices on four continents.
Bain Capital has been a leader in healthcare IT investing for more than a decade, supporting companies that power the healthcare ecosystem with solutions for payers, providers, pharmaceutical companies and consumers. The firm focuses on healthcare IT innovators solving key healthcare challenges using data, analytics, AI and technology, with specific interest in areas like revenue cycle management, clinical workflow optimization and patient engagement.
About Blackstone
Blackstone is the seller in this transaction, having acquired HealthEdge a majority stake in HealthEdge for approximately $700 million in 2020. Under Blackstone’s ownership, HealthEdge made several strategic acquisitions, including The Burgess Group LLC (payment integrity software) in 2020, Altruista Health Inc. (payor care management software) in 2020 and Wellframe Inc. (digital health management) in 2021. During this period, HealthEdge’s revenue doubled from approximately $200 million in 2020 to $400 million in 2024.
Transaction Advisors
The transaction involves several prominent advisors. TripleTree is acting as lead financial advisor, Kirkland & Ellis as legal counsel and Ares Management as lead financing partner to Bain Capital. For Blackstone, Evercore and UBS Investment Bank are acting as financial advisors, with Simpson Thacher & Bartlett serving as legal counsel.
Market Context
The Healthcare IT market has seen strong merger and acquisition activity in 2024, driven by factors like increased medical costs and digital transformation. Acquisition activity has remained strong year-to-date, with healthcare services businesses increasingly targeting IT providers. This trend is expected to continue through 2025, with a stronger U.S. and European deal market anticipated.
Acquirers are increasingly favoring Business-to-Business (B2B) market participants over Direct-to-Consumer ones. B2B-focused companies offering practice management and revenue cycle management software solutions are in high demand due to healthcare providers seeking to fortify revenue collection and reimbursement. The U.S. practice management system market was estimated at USD 5.5 billion in 2023 and is projected to grow at a CAGR of 9.40% from 2024 to 2030.
Strategic Implications
This acquisition represents a significant expansion of Bain Capital’s healthcare IT portfolio. For HealthEdge, the transaction provides an opportunity to leverage Bain Capital’s expertise and resources to accelerate growth and innovation in its SaaS platform for health plans.
HealthEdge’s strategy has focused on creating an integrated suite of solutions for health insurers, covering core administrative processing, payment integrity and care management. The company has aimed to help healthcare payors modernize their systems, streamline operations like plan design and claims management, and adapt to new business models like value-based care. There is an expectation that HealthEdge is well-positioned to drive the integration of generative artificial intelligence into health plans.
