Transaction values RxBenefits at approximately $1.1B
Advent and existing shareholder Great Hill Partners now each own equal stakes in the business alongside management who will continue to be investors
Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has completed a recapitalization of RxBenefits, the employee benefits industry’s first and only technology-enabled pharmacy benefits optimizer (PBO), which values the company at approximately $1.1 billion. With this investment Advent joins Great Hill Partners (“Great Hill”), a leading growth-oriented private equity firm, which first invested in the company in 2016. Advent and Great Hill now each own equal stakes in RxBenefits, alongside a significant investment from the current management team.
Founded in 1995, RxBenefits serves as a trusted pharmacy adviser to employee benefits consultants and as the pharmacy benefits solution provider of choice for self-insured employers. The company leverages longstanding partnerships with the leading pharmacy benefits managers (PBMs), a proprietary data management and business intelligence platform and tailored clinical strategies to deliver unmatched pharmaceutical cost savings to self-insured employers and small and mid-sized businesses (SMBs). The recapitalization will provide RxBenefits with capital to accelerate the build out of its salesforce, broker channels and technology and continue executing on its strong growth strategy, both organically and through M&A.
“RxBenefits is the industry’s only fully independent, client-aligned, multi-PBM platform delivering tangible pharmacy savings, optimized clinical outcomes and a superior customer experience,” said Bryan Statham, Chief Executive Officer of RxBenefits. “Advent brings a robust track record in the healthcare services and tech sectors, and their investment is a testament to the opportunities ahead. We look forward to growing in partnership with Advent and Great Hill as we continue to build out our specialty and clinical programs to deliver additional cost savings to our clients.”
“Prescription drug costs have seen significant increases in recent years, creating a compelling market opportunity as small and mid-sized employers seek to manage their pharmacy benefit spend,” said John Maldonado, Managing Partner at Advent. “RxBenefits’ deep relationships with PBMs and high-touch account management service model have enabled it to deliver savings to mid-sized employers and fill a key gap in the market. We are incredibly excited about RxBenefits and believe the company is well-positioned for continued expansion.”
Led by an experienced and proven management team of industry veterans, RxBenefits offers comprehensive “white-glove” service throughout the prescription benefits process for employee benefits consultants, self-funded employers, hospital and health systems and third party administrators. The RxBenefits team consists of over 500 pricing, technology, data and clinical experts providing coverage to more than 2 million members.
“We are excited to continue working with Bryan and the RxBenefits management team, and we are thrilled to welcome Advent as an investor in the business going forward,” said Mark Taber, a Managing Partner at Great Hill Partners. Rafael Cofiño, Partner at Great Hill Partners, added, “We remain as enthusiastic about the business as when we first invested in 2016, and are excited to join forces with Advent in this next chapter of RxBenefits’ growth.”
Advent has a strong track record of investing in healthcare, having completed over 45 investments in the sector over 30 years.
Deutsche Bank served as financial advisor and Weil, Gotshal & Manges served as legal advisor to Advent. Barclays and TripleTree served as financial advisors and Goodwin Procter served as legal advisor to Great Hill Partners and RxBenefits. Maynard, Cooper & Gale served as legal adviser to RxBenefits.