Consumer-Directed Healthcare Leader ConnectYourCare Emerging as Private Company Growth Equity Firm ABS Capital to Assume Majority Ownership
HUNT VALLEY, Md., Aug. 31, 2012 /PRNewswire/ -- ConnectYourCare, a leading consumer-directed healthcare (CDH) account administrator, announced today that its parent company, Express Scripts Holding Company (Nasdaq: ESRX), has entered into a definitive agreement to divest ConnectYourCare. Effective upon the closing of the transaction, which is subject to customary closing conditions, ConnectYourCare will operate independently of Express Scripts with majority ownership by ABS Capital Partners, a leading investor in late-stage growth companies.
Upon closing, the transition will enable ConnectYourCare to grow as a company solely focused on CDH account administration. Founded in 2002, upon the passing of legislation that validated Health Reimbursement Arrangements (HRAs), ConnectYourCare has been a pioneer and leader in the CDH industry. ConnectYourCare became a wholly owned subsidiary of Express Scripts in 2007. ABS Capital General Partner Cal Wheaton and Founding Partner Tim Weglicki will join the board of ConnectYourCare as a result of the transaction.
"We look forward to this exciting opportunity to bring a renewed focus to the business of delivering employers and consumers healthcare savings in the form of account-based health plans," said ConnectYourCare President and CEO Jamie Spriggs. "With the current political and social focus on healthcare, the timing is perfect to reaffirm ConnectYourCare's commitment to providing innovative, consumer-friendly tools that help patients successfully navigate the complexity of healthcare accounts."
ConnectYourCare has a singular focus on tax-advantaged accounts and therefore offers solutions that are uniquely tailored to simplifying the administration and management of these accounts by employers and employees. Its high quality software platform allows for greater automation, increased self-service and high customer satisfaction. Employees can manage their accounts online in the CDH Portal and have fast and reliable access to healthcare account funds with ConnectYourCare's payment card. These tools, combined with the Company's prescription drug comparison, medical encyclopedia, hospital comparison, wellness tools and much more, form the most comprehensive CDH toolsets on the market.
"ConnectYourCare's technology and services empower individuals with the information and tools needed to efficiently manage their own healthcare spending – a critical aspect in the changing healthcare landscape," said Cal Wheaton. "We are thrilled to partner with Jamie and his team to pursue this significant opportunity." ABS Capital has successfully effected previous spinouts in companies such as Alarm.com, which it purchased from MicroStrategy, and INTTRA Inc., which it purchased from its shipping company shareholders.
ConnectYourCare's consumer-directed healthcare (CDH) benefit delivery platform provides a pathway for migration to account-based health plans, supplying tools for consumers to better manage their healthcare dollars. ConnectYourCare's core strategy is based upon providing stewardship to our customers by helping them simplify complex health benefit concepts, motivate individuals to act, and execute a successful solution, resulting in long-term health benefit cost containment. Please visit www.ConnectYourCare.com for more information.
About ABS Capital Partners
At ABS Capital Partners, we have a simple mission--to invest in the very best late-stage growth companies. Our singular focus has allowed us to cultivate a deep understanding of what it takes to get promising businesses to the next level. Our priority is finding the best growth companies—not completing certain types of transactions or investing specific amounts of dollars. Our flexibility allows us to structure the right deal to support a company's growth trajectory and particular needs. We actively partner with CEOs to tackle the challenges of rapid expansion and create significant long-term value. Our partners are highly experienced at working with growth companies—each having spent between one and three decades in their industry as C-level executives, investment bankers, consultants or investors.
ABS Capital Partners specializes in four growth sectors—business and education services, health care, media and communications, and technology—and has invested in over 100 growth companies over the past two decades. With over $2 billion raised since inception, including $500 million in its latest fund, ABS Capital continues to build on its strong reputation for teaming with CEOs and market leaders to deliver strong returns to investors. For more information, please visit www.abscapital.com.
SOURCE Express Scripts