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Blackstone Considers Sale of HealthEdge

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Reporting: Armie Margaret Lee, Emily Fasold, Paola Aurisicchio, Dayna Fields


Blackstone Inc. is exploring a sale of healthcare technology company HealthEdge Software Inc., according to industry sources.

Based in Burlington, Mass., HealthEdge provides software to health insurers.

Blackstone’s growth equity group led the purchase of a majority stake in HealthEdge in 2020 in a transaction that reportedly valued the business at approximately $700 million, including debt.

Under Blackstone’s ownership, HealthEdge’s acquisitions include payment integrity software business The Burgess Group LLC and Martis Capital Management LLC-backed payor care management software company Altruista Health Inc. in 2020 and digital health management firm Wellframe Inc. in 2021.

HealthEdge has first lien debt maturing in July 2031, priced at SOFR+475 bps, that is owned by Ares Capital Corp., Franklin Bsp Capital Corp. and Goldman Sachs BDC Inc., among others, according to Octus’ BDC Database.

Bloomberg reported in 2022 that Blackstone was considering options for HealthEdge, including a potential stake sale that could give the portfolio company a valuation of about $3 billion. HealthEdge was projected to generate $400 million in revenue and $60 million in earnings in 2023, according to the report.

Recent deal activity in the broader healthcare technology sector includes Francisco Partners’ sale of pharmacy software company RedSail Technologies LLC to Leonard Green & Partners, with Francisco reinvesting in the business, and GTCR LLC’s sale of RevSpring Inc., a provider of billing and communications products to healthcare and financial services companies, to Frazier Healthcare Partners for about $1.4 billion.

Representatives for Blackstone and HealthEdge did not immediately respond to requests for comment.