Francisco Partners buys up Connecture in wake of $3.9bn fundraise


Tech-focused private equity investor Francisco Partners has acquired insurance marketplace platform creator Connecture.

As part of the deal, Francisco will pay $0.35 per share for common stock in the business not held by them or fellow Connecture backer Chrysalis Ventures.

Francisco and Chrysalis now own 70 per cent of the combined voting power of the company’s outstanding vote shares.

The vehicle used to complete the transaction has not been revealed, but the firm recently held a final close on its latest fund after raising $3.9bn.

Connecture is a web-based consumer shopping and retention platform for health insurance distribution. It offers health insurance plans for individuals based on their preferences, health statues and expected costs.

The firms investment will allow the business to embark on its next phase after a “transformational year”, according to Connecture CEO Jeff Surges.

Francisco now boasts a portfolio of more than 40 businesses across the communications, fintech, healthcare IT, internet, security, software and systems sectors

The deal comes just months after AltAssets reported that the firm had invested in health network Availity.

The transaction is expected to close in the first half of this year.

Copyright © 2018 AltAssets

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