December 8th, 2009 -- IkaSystems Corp., a Southborough, Mass.-based provider of enterprise-level, Web-based technologies for the healthcare payer market, has raised funding from Providence Equity Partners.
PRESS RELEASE
ikaSystems Corporation and Providence Equity Partners LLC, a global private equity firm managing over $22 billion, announced today that Providence has invested in ikaSystems. Terms of the transaction were not disclosed. ikaSystems, a provider of enterprise-level Web-based technologies for the healthcare payer market, will use the proceeds to fund future growth, including enhancing project management, account management and implementation services as the company continues to rapidly expand its market share. The companies also announced that healthcare industry veteran Eran Broshy, former chief executive officer and currently chairman of inVentiv Health, Inc., has been named a senior advisor at Providence and will serve as chairman of the board at ikaSystems.
Under the successful leadership of founder and chief executive officer Ravi Ika, ikaSystems has experienced significant self-funded growth. As health insurance companies increasingly seek new approaches to reducing administrative expenses while containing medical expenses, the company’s flagship technology platform, ikaEnterprise, is rapidly replacing incumbent technologies. ikaEnterprise automates all key processes in the payer business cycle for any health plan line of business: individual, employer-sponsored, Medicare and Medicaid. ikaEnterprise combines business intelligence and transactional systems for full sales-cycle automation, core claims adjudication, care management and proactive quality measurement and reporting with self-service portals for sales, administrative, employer, member and provider use. The result is an end-to-end, fully Web-deployed solution for business process optimization and intelligence management.
“In ikaEnterprise, health insurers have at last found a technology platform that can reinvent the way they do business, ensuring their competitive edge in a time of certain and historic change,” said Ika. “In Providence, we have found an investor that knows our industry and business model well and recognizes our strengths: the superior agility of our products, our passionate commitment to customer service, and our vision for a more connected, transparent and value-based healthcare system. We are delighted that they are investing capital and their strategic resources to help us continue building a world-class organization.”
Providence is the leading global private equity firm specializing in equity investments in media, entertainment, communications and information companies around the world.
“We invest in companies like ikaSystems that have compelling growth opportunities, business models that are disruptive to an established industry, and strong management teams,” said Peter O. Wilde, a managing director at Providence. “ikaSystems has compiled an impressive track record of innovation and growth. We are pleased that Eran will both serve as a senior advisor to Providence and bring his tremendous industry experience to working with Ravi and his team as we look forward to a long and successful partnership with the company.”
Broshy commented, “ikaSystems is poised to benefit significantly from the burgeoning demand among payers for greater efficiencies and innovation. We have heard a consistent message directly from their clients that ikaSystems has the technology platform and the vision to help them continuously innovate while lowering costs — particularly in these challenging times. Ravi is a great entrepreneur and leader, and I look forward to supporting him as he continues to shape the market and build long-term value for the company and its clients.”
Prior to joining Providence, Broshy was chief executive officer of inVentiv, where he transformed the company into the leading provider of commercialization and complementary services to the global pharmaceutical and biotechnology industries. Broshy remains chairman of inVentiv and is also a director of Magellan Health Services. Prior to joining inVentiv, he served as a partner at The Boston Consulting Group, where he was responsible for the healthcare practice across the Americas. Broshy received a master of business administration degree from Harvard University, a master of science degree from Stanford University and a bachelor of science degree from the Massachusetts Institute of Technology.
In addition to Ravi Ika, Eran Broshy and Peter Wilde, the ikaSystems board of directors will include Jesse Du Bey, also of Providence, and healthcare industry veteran Stephen Wiggins, founder and former chief executive officer of Oxford Health Plans and currently managing director at Essex Woodlands Health Ventures, who was an early investor in ikaSystems.
About Providence Equity Partners
Providence Equity Partners is the leading global private equity firm specializing in equity investments in media, entertainment, communications and information companies around the world. The principals of Providence manage funds with approximately $22 billion in equity commitments and have invested in more than 100 companies operating in over 20 countries since the firm’s inception in 1989. Significant investments include Archipelago Learning, Bresnan Broadband Holdings, Casema, Com Hem, Digiturk, Education Management Corporation, eircom, Hulu, Idea Cellular, Kabel Deutschland, NexTag, Ono, PanAmSat, ProSiebenSat.1, Recoletos, TDC, Univision, VoiceStream Wireless, Warner Music Group, Western Wireless and Yankees Entertainment & Sports Network. Providence is headquartered in Providence, RI (USA) and has offices in New York, London, Los Angeles, Hong Kong and New Delhi. Visit provequity.com for more information.
About ikaSystems Corp.
ikaSystems is healthcare payers’ premier provider of enterprise-level Web-based technologies for commercial, Medicare and Medicaid lines of business. ikaEnterprise, the company’s flagship product, automates all key processes in the payer business cycle — from marketing and sales through claims administration and customer service to care and quality management — all on a single integrated platform. Using our agile, modular technology, organizations can proactively move to lower administrative and medical care expenses and thrive in even the most challenging environments. To learn more, please visit ikasystems.com.
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