Francisco Partners acquires health insurance marketplace Connecture


Health insurance marketplace Connecture has been acquired by Francisco Partners and Chrysalis Ventures.

As part of the transaction, Francisco Partners’ affiliated entities will pay $0.35 per share for each of Connecture’s common stock not held by existing preferred investors. This investment will see the company become a privately-held company by Francisco Partners, Chrysalis Ventures and their affiliates.

The VC firms Francisco and Chrysalis will own around 70 per cent of the voting power.

Connecture is an online-based consumer shopping, enrolment and retention platform for the health insurance industry. Through the product, users received personalised shopping experiences which recommends policies based on preferences, health status, preferred providers, medications, and expected out-of-pocket costs.

The Wisconsin-based company helps health insurance marketplace operators such as health plans, brokers and exchange operators. Policies available are for group, individual, medicare and engagement.

Francisco Partners was very active in the FinTech sector last year, with the firm closing its latest investment vehicle on $3.9bn. The vehicle will invest across the FinTech, communications, healthcare IT, internet, security and software and systems sectors.

Last week saw a selection of InsurTech deals close, with on-demand insurance provider Dinghy securing £1.2m in its funding round led by Balderton Capital. Other InsurTech firms raising capital last week, include CLARA’s $11.5m Series A and Armour’s $500m equity injection.

Copyright © 2018 FinTech Global

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