Transactions
October 16 2006
Connextions Recapitalized By NMC
Company Description
Connextions is a leading provider of outsourced Customer Relationship Management (CRM) services for both healthcare and commercial organizations. The Company’s strong technology and data analytics core competence has served as a unique differentiator in the market, providing a foundation for delivering higher value services throughout the entire customer life cycle. The Company’s proprietary technology platform allows organizations to aggregate and analyze valuable customer data that can be leveraged to enhance customer satisfaction, generate additional revenue, and reduce costs.
In the healthcare industry, Connextions combines its proven CRM expertise with leading clinical and decision-support technologies for healthcare payer and provider organizations. Connextions’ technology and data analytics solve one of the biggest challenges for healthcare organizations today, the integration of patient/member data and management services across the healthcare consumer life cycle. Its blue chip client base includes some of the world’s leading health plans, PBMs, healthcare providers, and employers.
Today Connextions is experiencing 100%+ growth in its healthcare business, is operating its existing service centers near 100% capacity, and is well-positioned to take advantage of the overall favorable growth dynamics in the healthcare industry.
Objectives
In addition to the Company’s founders, Connextions has a core management team of younger executives entering the prime of their careers. In order to fully capitalize on the growth opportunity ahead, the Company sought a recapitalization that would provide liquidity for its founders while also providing the broader management team with a financial sponsor to pursue a substantially larger value creation opportunity over a 3-5 year time horizon.
Connextions engaged TripleTree as its exclusive financial advisor to explore alternatives for a recapitalization of the business. The Company also retained TripleTree as an ongoing advisor for its long-term growth strategy, including potential follow on acquisitions that extend the value of Connextions’ technology and services.
Results
Through a collaborative effort with Connextions’ management team, TripleTree targeted a select group of global private equity firms that specialize in the healthcare and business services sectors. The competitive process, along with the Company’s strong financial metrics and operational performance, garnered multiple offers and ownership structures for the shareholders to consider. The Company ultimately selected New Mountain Capital, based on their attractive deal structure (premium value financed without the use of debt), as well as their ability to fund follow-on acquisitions and support the management team’s long-term growth objectives.
LEAD INVESTMENT BANKERS
Scott Donahue
David Brownlie
Seth Kneller
Company Description
Connextions is a leading provider of outsourced Customer Relationship Management (CRM) services for both healthcare and commercial organizations. The Company’s strong technology and data analytics core competence has served as a unique differentiator in the market, providing a foundation for delivering higher value services throughout the entire customer life cycle. The Company’s proprietary technology platform allows organizations to aggregate and analyze valuable customer data that can be leveraged to enhance customer satisfaction, generate additional revenue, and reduce costs.
In the healthcare industry, Connextions combines its proven CRM expertise with leading clinical and decision-support technologies for healthcare payer and provider organizations. Connextions’ technology and data analytics solve one of the biggest challenges for healthcare organizations today, the integration of patient/member data and management services across the healthcare consumer life cycle. Its blue chip client base includes some of the world’s leading health plans, PBMs, healthcare providers, and employers.
Today Connextions is experiencing 100%+ growth in its healthcare business, is operating its existing service centers near 100% capacity, and is well-positioned to take advantage of the overall favorable growth dynamics in the healthcare industry.
Objectives
In addition to the Company’s founders, Connextions has a core management team of younger executives entering the prime of their careers. In order to fully capitalize on the growth opportunity ahead, the Company sought a recapitalization that would provide liquidity for its founders while also providing the broader management team with a financial sponsor to pursue a substantially larger value creation opportunity over a 3-5 year time horizon.
Connextions engaged TripleTree as its exclusive financial advisor to explore alternatives for a recapitalization of the business. The Company also retained TripleTree as an ongoing advisor for its long-term growth strategy, including potential follow on acquisitions that extend the value of Connextions’ technology and services.
Results
Through a collaborative effort with Connextions’ management team, TripleTree targeted a select group of global private equity firms that specialize in the healthcare and business services sectors. The competitive process, along with the Company’s strong financial metrics and operational performance, garnered multiple offers and ownership structures for the shareholders to consider. The Company ultimately selected New Mountain Capital, based on their attractive deal structure (premium value financed without the use of debt), as well as their ability to fund follow-on acquisitions and support the management team’s long-term growth objectives.
LEAD INVESTMENT BANKERS
Scott Donahue
David Brownlie
Seth Kneller
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