Zelis Welcomes New Investors, Enhancing U.S. Healthcare Financial Solutions
Deal News | Dec 04, 2024 | Parthenon Capital LLC
Zelis, a major provider of healthcare technology solutions, is selling a minority stake to new investors, including Mubadala Investment Company, along with Norwest and HarbourVest, while Parthenon and Bain Capital hold the majority stake. This infusion of capital underscores the growing confidence in Zelis' approach to addressing the complexities of the healthcare financial system in the United States. The company's CEO, Amanda Eisel, emphasizes their innovative solutions in removing financial complexity from healthcare, aiming for transparency and efficiency at scale. Mina Hamoodi from Mubadala highlights Zelis' unique approach in streamlining healthcare financial experiences in the U.S. The transaction, supported by financial advisor firms Goldman Sachs, J.P. Morgan, Evercore, and legal advisors, was finalized on November 26, 2024. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC were financial advisors, while Kirkland & Ellis LLP acted as legal advisor to Zelis. Evercore served as a financial advisor and Akin Gump Strauss Hauer & Feld LLP acted as legal counsel to Mubadala. As Zelis continues to grow with a double-digit increase in both revenue and profits, it has been recognized as one of the fastest-growing companies in the U.S. by Inc. 5000.
Sectors
- Healthcare Technology
- Private Equity
Geography
- United States – The primary operations and market focus of Zelis are centered in the U.S. healthcare system.
- Middle East – Mubadala Investment Company, one of the new investors, is based in the Middle East, bringing an international perspective to the investment.
Industry
- Healthcare Technology – Zelis operates within the healthcare technology sector, providing solutions that enhance the financial experience in healthcare services.
- Private Equity – Parthenon Capital and Bain Capital's involvement as majority shareholders situates Zelis within the private equity realm.
Financials
- Minority Stake – The transaction involved the sale of a minority stake in Zelis to multiple investors.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Zelis | Target Company | Company | A leading provider of healthcare technology solutions aimed at improving the financial aspect of healthcare in the U.S. |
| Parthenon Capital | Majority Owner | PE Firm | A private equity firm that continues to hold a majority stake in Zelis. |
| Bain Capital | Majority Owner | PE Firm | Another private equity firm maintaining a majority stake in Zelis. |
| Mubadala Investment Company | Investor | Company | A group led by this investment company purchased a minority stake in Zelis. |
| Norwest | Investor | Company | Part of the group of new investors acquiring a minority stake in Zelis. |
| HarbourVest | Investor | Company | Another entity in the group purchasing a minority stake in Zelis. |
| Goldman Sachs & Co. LLC | Financial Advisor | Company | Served as a financial advisor to Zelis for the transaction. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Also acted as a financial advisor to Zelis. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal advice to Zelis during the transaction. |
| Evercore | Financial Advisor | Company | Served as financial advisor to Mubadala. |
| Akin Gump Strauss Hauer & Feld LLP | Legal Advisor | Company | Acted as legal counsel to Mubadala. |
| Amanda Eisel | CEO | Person | Chief Executive Officer of Zelis, overseeing the company's strategic direction. |
| Mina Hamoodi | Head of Healthcare Investments | Person | Leads healthcare investments at Mubadala Investment Company. |