HealthEdge Software Inc. has sealed its first acquisition under Blackstone Group Inc.’s (BX) ownership, announcing Tuesday, July 21, its purchase of The Burgess Group LLC.
Alexandria, Va.-based Burgess is a payment integrity software company with a focus on improving healthcare payment operations.
“The acquisition of Burgess is a great strategic fit for HealthEdge to enter the large, high-growth market of payment integrity, helping address the estimated $1 trillion in wasteful spending in the U.S. healthcare system,” said Ram Jagannath, global head of healthcare at Blackstone Growth and chairman of HealthEdge, in the news release.
Burlington, Mass.-based HealthEdge provides health insurers with software for claims and benefit administration, as well as care management, among others.
Blackstone acquired a majority stake in HealthEdge in a deal announced in March and completed in April. Blackstone’s growth equity team led the investment. Terms of the transaction were not disclosed in the announcement, but according to a Wall Street Journal report, the deal gave HealthEdge a valuation of about $700 million, including debt.
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