Bain Capital Private Equity is acquiring a majority stake in Navicure, which provides cloud-based claims management and patient payment software for physician practices and hospitals.
Navicure, based in Duluth, Georgia, has more than 90,000 health care provider customers in the U.S. The company’s software offers “revenue-cycle management” --a term that refers to managing patient accounts through formation, claims, billing, payment and collections, as well as claims management, eligibility verification and other services related to insurance and patient payments.
Navicure’s software and automating revenue cycle management, helps health care providers as the reimbursement process becomes more and more complex, and as the providers play a role in managing health care costs and quality, says Chris Gordon, a managing director at Bain Capital.
The transaction is expected to close in July. Terms of the deal were not disclosed. Navicure founder and CEO James Denny Jr. will continue to lead the company with his executive team, and they will continue to have ownership in the company. The selling shareholders include JMI Equity and other minority investors.
Bain’s other health care and information technology investments include insurance software provider Applied Systems, which was sold for $1.8 billion in 2013 to Hellman & Friedman and JMI Equity; Viewpoint Construction Software; Blue Coat Systems; BMC Software; HCA Healthcare; Beacon Health Options; Physi o-Control; Quintiles Transnational and CRC Health Group.
The Bain-Navicure deal is the second one announced in June where a health care revenue-cycle management provider was acquired. MedData Inc., a billing and collections service provider for health care providers, is purchasing Cardon Outreach LLC, a health care revenue-cycle-management provider .
Aeris Partners LLC is advising Navicure, with Jenner & Block as legal counsel. For Bain, Ropes & Gray LLC is legal counsel and PwC LLP is accounting adviser. Antares Capital is providing financing with Bain Capital Credit, Capital One Healthcare and NXT Capital serving as joint arrangers.