Brookfield-based health care software developer Connecture Inc. announced it has finalized a $52 million equity investment from Francisco Partners, a San Francisco, California-based private equity firm.
The investment agreement also includes additional funds from Louisville, Kentucky-based Chrysalis Ventures, which already is a Connecture shareholder. Connecture’s shareholders approved the deal on April 28, and 52,000 shares of a new class of series A convertible preferred stock were issued to Francisco and Chrysalis on Monday.
As part of the deal, Francisco Partners co-president Ezra Perlman has joined the Connecture board, which was reduced in size from nine to seven. Alan Ying and Brett Carlson did not stand for re-election to the board and Robert Douglas Schneider has resigned from the board.
With the influx of cash, Connecture will have additional flexibility and resources in its creation of web-based information systems for the health care marketplaces implemented by the Affordable Care Act, which are used by the health plan, broker and insurance exchange markets. Connecture’s solutions allow these stakeholders to automate plan enrollment by presenting options to consumers and providing enrollment, renewal and management services.
“This investment, which represents one of our largest rounds of funding to date, is a significant milestone for Connecture,” said Jeff Surges, chief executive officer of Connecture. “Working alongside Francisco Partners, which has extensive knowledge and experience in health care and health information technology, further positions the company for continued success as we expand our platform capabilities, invest resources to further product innovation, and support continued growth through new and existing partnerships with our customers.”
