Photo courtesy of CVS Health
CVS Health will officially sell bswift, a provider of benefits technology and services, to Francisco Partners, a global investment firm specializing in working with technology businesses.
Financial terms of the deal were not disclosed, but the acquisition is expected to close in the fourth quarter.
Founded in 1996, bswift is a provider of software and services designed to simplify benefits and human resource management, providing a cloud-based technology platform. The company said it combines its expertise in technological innovation with strong customer service and a consumer-driven approach.
The company’s technology seeks to help its partners and employers simplify administration, manage employee benefits, reduce administrative costs, and connect employees to a variety of resources.
bswift will continue to work with CVS Health and CVS Health company Aetna to provide technology advantages to its employees and customer base.
What’s the impact
Since its inception more than 20 years ago, Francisco Partners has invested in more than 400 technology companies. Much of its experience comes from the healthcare and human capital technology markets.
Francisco Partners also has extensive experience working with corporations to execute segment divestitures, such as IBM’s Watson Health business (now Merative) and Discovery Inc.’s Discovery Education business.
“We appreciate the work CVS Health has done in growing this business and believe our partnership will help rapidly drive a key focus to execute on organic and inorganic growth strategies,” said Anders Mikkelsen, vice president at Francisco Partners.
bigger trend
CVS Health may be selling bswift, but it’s also making acquisitions. With its latest acquisition, Signify Health, CVS beat out other potential acquirers including Amazon and UnitedHealth Group.
CVS has entered into a definitive agreement to acquire Signify Health for $30.50 per share in cash, for a total transaction value of approximately $8 billion. Signify reportedly sold by auction, with board members meeting on Labor Day to discuss bids.
CVS Health, which acquired Aetna in 2018, has been expanding into the provider space with Minute Clinics and health checks. Home health is expected to grow due to an aging population and expanded home care models during the pandemic.
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Email the author: jeff.lagasse@himssmedia.com