Mubadala-led consortium buys stake in health tech firm Zelis

Abu Dhabi’s Mubadala said on Thursday that a consortium it led has agreed to acquire a minority stake in US healthcare technology company Zelis.

Mubadala said the co-investment process for the deal attracted a global group of investors, including Norwest and HarbourVest. Parthenon and Bain Capital remain the majority owners of Zelis.

“Zelis is helping to streamline the US healthcare financial experience, which is complex and in need of technology-driven solutions that can unlock efficiencies and create better outcomes for everyone engaged in the care journey,” said Mina Hamoodi, head of Healthcare Investments at Mubadala.

“This is the largest investment that we have made in the healthcare space and our first meaningful venture into payer and provider tech, priority sub-sectors for us within healthcare IT,” says Hamoodi.

Zelis operates a platform that helps digitise payments in health care, where billions of dollars of spending is still disbursed using paper checks. The company works with hundreds of health payers to manage claims, negotiate with providers and save money.

The platform serves more than 750 payers, including the top five national health plans, BCBS insurers, regional health plans, TPAs and self-insured employers, as well as millions of healthcare providers and consumers.

Goldman Sachs & Co. and J.P. Morgan Securities served as financial advisors to Zelis, while Evercore served as financial advisor to Mubadala.

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