Connextions, Inc., founded in 1996, is a rapidly growing leader in the consumer driven health care sector. The сompany’s proprietary service offering includes a unique combination of software, data analysis, call centers, certified insurance brokers and others which, together, allow major health care payers and providers to acquire, retain, schedule, refer and manage large populations of individual health care consumers. Connextions’ clients include such industry leaders as UnitedHealth, Blue Cross Blue Shield of Florida, and Caremark.
New Mountain identified Connextions as part of a longstanding interest in the consumer driven health care sector and business services space which began over two years before the transaction. Given Connextions’ growth opportunities and management’s large on-going ownership, the company was focused on finding a “value added” partner with a proven ability to help management build the business. For this reason and after carefully reviewing a variety of private equity alternatives, Connextions awarded New Mountain an exclusive opportunity to become management’s partner.
During New Mountain’s period of ownership, NMC worked closely with Connextions to execute a key strategic acquisition, build a world class board of directors, strengthen the senior management team, and develop an innovative new product addressing the market for private health insurance exchanges. In particular, New Mountain helped Connextions add highly innovative, new software capabilities and product offerings to its traditional “call center” oriented business model. Connextions’ revenues approximately doubled between 2006 and 2011(E) under New Mountain’s ownership, and at the time of exit, Connextions served six of the top seven health insurance carriers representing over 110 million enrollees. The company’s profit grew eight-fold in the same time period. Connextions was sold in August 2011 to OptumHealth, Inc., a subsidiary of UnitedHealth Group, Inc., producing a substantial gain for the company and its shareholders.