Advent International and Great Hill Partners Announce Recapitalization of RxBenefits, a Leading Pharmacy Benefits Optimizer
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
BOSTON and BIRMINGHAM, AL, January 19, 2021 – 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.
About Advent International
Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 350 private equity transactions in 41 countries, and as of September 30, 2020, had $66.2 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. After 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.
Great Hill Partners is a Boston-based private equity firm targeting investments of $25 million to $500 million in high-growth companies across the software, digital commerce, financial technology, healthcare, and digital infrastructure sectors. Over the past two decades, Great Hill has raised nearly $8 billion of commitments and invested in more than 75 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. In addition to RxBenefits, Great Hill’s portfolio of healthcare companies includes Pareto Health, PartsSource, Quantum Health, and Vatica Health. Prior healthcare investments include bswift, Passport Health Communications, PlanSource, Qualifacts, and SterilMed. For more information please visit www.greathillpartners.com.
RxBenefits is a technology-enabled pharmacy benefits optimizer (PBO) with more than 500 pharmacy pricing, data, and clinical experts working together to deliver prescription benefit savings to employee benefit consultants and their self-insured clients. With nearly 2 million members, RxBenefits brings market-leading purchasing power, independent clinical solutions, and high-touch service to its customers – ensuring that all businesses, regardless of size, can provide an affordable and valuable pharmacy benefit plan to their employees. The company is headquartered in Birmingham, AL. For more details, visit www.rxbenefits.com or follow the company on Facebook, Twitter, and LinkedIn.