Genstar Grows ConnectiveRx Through Recapitalization Deal

As a patient engagement and provider support platform, ConnectiveRx helps pharmaceutical firms, clinicians, and patients stay in communication to ensure medication access and adherence for specialized and branded medication. The firm has doubled in size since its start in 2015 and grown both organically and through acquisitions. Consequently, the software maker requires capital to help them keep pace with demand.

Private equity firm Genstar Capital has been a majority stakeholder in ConnectiveRx since the beginning, and its anticipated success is only outstripped by its actual expansion. “We have enjoyed significant growth over the past couple of years,” said Harry Totonis, CEO of the health firm. “As we look forward, we’re seeing a lot more growth in what we do and a lot more growth coming from our customers.”

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In 2017, ConnectiveRx bought Pittsburgh-based Careform to roll its tech "hub" services that provide patient and provider engagement as part of its offerings. "Careform will enhance and broaden our existing solutions for our biopharmaceutical customers with specialty medications,” said Totonis. “We are delighted to be working with Careform, to better serve our customers and improve outcomes for patients, providers, and healthcare.”

A year later, the firm acquired The Macaluso Group (TMG) to bring its tech-delivered specialty pharmacy benefits to ConnectiveRx’s customers. TMG's comprehensive buy and bill reimbursement platform, along with its market-leading payment solution, will enhance the firm's capabilities to provide secure payment and debit processing tools.

Genstar recently announced that it entered into an agreement with Harvest Partners SCF and Blackstone Tactical Opportunities to utilize funds under their management to become minority stakeholders in the New Jersey-based company. The deal will give ConnectiveRx more financial flexibility to continue growing and enable a favorable outcome for its shareholders. The arrangement also included a refinancing of its credit with KKR Capital Markets.

Currently, the company partners with hundreds of biopharmaceutical makers to streamline how patients collect and remain consistent with their therapy. They also reach more than 84 million people and 1.5 million healthcare providers each year.

Genstar Capital is an influential private equity firm that has been active for over 30 years. The firm has an estimated $17 billion in assets under management focuses on investments in the financial services, healthcare, industrial, and software sectors. The firm partners with management teams and its advisor network to help its portfolio companies realize their potential as industry leaders.

Harvest Partners SCF is a private equity firm that prefers minority-stake investments in portfolio companies. Founded in 2014, the firm is comprised of a team of investment professionals who provide flexible, non-control equity solutions to organizations and other private equity businesses that require capital for growth, liquidity, new investments or acquisitions. Blackstone Tactical Opportunities is the investment arm of the private equity firm Blackstone. The Tac Opps team seeks out global investments across industries and asset classes that provide attractive or differentiated investment opportunities.