Global investment firm Francisco Partners, which partners with technology businesses, announced that it has signed a definitive agreement to acquire bswift from CVS Health for an undisclosed amount.
The acquisition is expected to close in the fourth quarter, subject to the satisfaction of standard closing conditions.
bswift was founded in 1996, and has since provided software and services to help streamline benefits and human resources administration via a cloud-based technology platform. Specifically, it pursues simplifying administration, reducing administrative costs, connecting employees with health resources and managing employee benefits.
Francisco Partners has a history of investing in healthcare and technology-based businesses with stake in over 400 technology companies.
“We are excited to partner with bswift and help the team continue to grow its robust technology and service offerings across benefits and healthcare. bswift is uniquely positioned as a market leader to help employers navigate the evolving industry trends and opportunities to holistically engage employees through health, wellness and financial benefits,” Justin Chen, partner at Francisco Partners, said in a statement.
THE LARGER TREND
In January, Private equity firm Francisco Partners announced plans to purchase IBM Watson’s health analytics assets. In June it announced that it would use those tools to launch new healthcare data company Merative, which combines Watson’s assets to bolster new resources for investment, acquisitions, partnerships and growth.
Following the recent acquisition between Francisco Partners and bswift, CVS will continue to partner with bswift to provide its benefits technology to CVS Health’s employees and client base.
“CVS Health and Aetna remain committed to bswift and to the clients, partners and members we support in benefits administration,” Mark Santos, vice president of diversified commercial solutions at Aetna, said in a statement.
“FP’s deep expertise in technology and proven track record in nurturing and growing technology businesses will enable bswift’s loyal base of employees to continue delivering innovative solutions.”