Connecture Inc. gets $52 million investment
Connecture Inc. is getting a $52 million investment to help the Brookfield company build more health insurance marketplaces.
The deal, led by San Francisco private equity firm Francisco Partners, is pending shareholder approval but will boost the company’s balance sheet and help its growth initiatives, CEO Jeff Surges said in an earnings call today.
Francisco Partners co-chair Ezra Perlman will join the company’s board of directors as part of the deal.
The company makes software to help health insurers, brokers and the government get people signed up to health plans. Its contracts include an 11-year one with Medicare.gov, which the company says has been extended, and about two thirds of Blue Cross Blue Shield plans.
The company reported revenues of $95.8 million for the year, up from $84.6 million in 2014. Its net loss was down from $10.2 million in 2014 to $7.3 million last year.
But the revenue growth wasn’t without challenges. Key among them was less interest from states in setting up their own Affordable Care Act exchanges, instead opting to join the federal exchange.
Excluding that segment of its products showed a revenue increase of 31 percent from 2014. The experience with state exchanges, though, will help as the company looks to expand its state Medicaid products, Surges said.
The company projected revenues this year to be between $100 million and $110 million. Its stock closed up 7 percent Monday to $3.06 per share.
See the investment announcement
See more on the company’s earnings