Allowing Providers to Better Manage Eligibility and Payments
Passport Health was a provider of a comprehensive suite of administrative, clinical and financial solutions to hospitals, physician practices, and other healthcare providers.
We built a strong relationship with the management team over the next five years while discussing various investment scenarios. Upon learning that Passport was contemplating a recapitalization to coincide with its acquisition of Nebo Systems, we aggressively pursued the company and, in July 2008, co-led a recapitalization of Passport with another private equity firm. After acquiring Passport, the investors oversaw the executive search processes that led to the hiring of a new CEO, CFO, and CTO, transforming the management team over our first 18 months of ownership.
StatusAcquired by Experian
SectorSoftware, Healthcare
We built a strong relationship with the management team over the next five years while discussing various investment scenarios. Upon learning that Passport was contemplating a recapitalization to coincide with its acquisition of Nebo Systems, we aggressively pursued the company and, in July 2008, co-led a recapitalization of Passport with another private equity firm. After acquiring Passport, the investors oversaw the executive search processes that led to the hiring of a new CEO, CFO, and CTO, transforming the management team over our first 18 months of ownership.
This overhaul of the company’s sales and marketing effort led to shrinking direct sales territories, assigning named accounts, increasing direct sales head count, creating an inside sales team for smaller accounts, and increasing accountability and incentives for upsells and bundled sales performance. Additionally, the board approved significant budget increases in research and development that grew capital expenditures from $3 million annually prior to our acquisition to $9 million by 2012, resulting in a significant upgrade in the depth and breadth of Passport’s product line.
The effect of these initiatives on company performance was dramatic. Following this enhanced product development spending, in 2011, Passport launched its flagship patient registration suite, eCareNext, which quickly became the #1 KLAS-ranked product. The revamped sales team drove annual bookings from under $11 million in 2009 to $46 million in 2013.
Passport Health was sold to Experian plc for $850 million in November 2013, a purchase multiple of 7.3x revenue and 20.3x EBITDA for LTM September 2013.
Fast Facts
- Recruited Senior Management
- Supported Significant Technology Investment
- Optimized Go-to-market Strategy
- Advised on Sale
Portfolio company executives were not compensated for the statements regarding their business relationship with Great Hill. Such executives do receive ordinary course compensation by portfolio companies which in some cases are controlled by Great Hill and in certain cases may also be invested in Great Hill Funds. There are certain conflicts of interest relating to such executives because they are employed by Great Hill portfolio companies and receive benefits in connection with such employment.