Singh’s health data tech company was an ambitious endeavor born in his garage in the late nineties. Using a plethora of credit cards to create something out of nothing, Singh succeeded in cultivating what began as a simple idea into a company with over 500 employees, and $150 million in revenue by 2019, all without the help of outside investors.
All that has recently changed. Earlier this year, Edifecs garnered the interest of private equity firms TA Associates and Francisco Partners. While the details of the deal were not made public, Singh said in a statement that the investment was upwards of $1.5 billion.
Aside from helping the company grow, Singh intends for the influx of cash to be passed along to his employees.
“It was good for financial liquidity for existing shareholders, including a number of employees who benefited from having some liquidity for all the hard work they put in over the last many, many, many years,” he said. “The deal was kind of a reward for all their hard work. ... I’m just very happy that I’m able to do that because people have put a lot of trust in me and the company for years, for years.”
TA Associates and Francisco Partners will have the potential for an earn-out of up to $400 million, which could send Edifecs’ valuation up to $1.8 billion. The deal also comes with three new board members: Ashutosh Agrawal, managing director at TA Associates; Ali Evans, vice president at Francisco Partners; and Ezra Perlman, co-president of Francisco Partners.
Edifecs focuses on transaction and information processing. The move from paper to digital has been underway for many years now, but has become even more necessary during the COVID-19 pandemic, which healthcare data needs to move between patient and provider at a higher speed than ever, preferably without physical contact. Edifecs’ customers include most of the big names in healthcare – BlueCross BlueShield, Cigna, and Humana among over 350 other companies. Edifecs recently launched a separate COVID-19 dashboard to help users analyze testing claims data, among other things. The company is based in Bellevue, Washington, but also employs workers in Atlanta, India, and Moldova.
