Continuing forward with its efforts to try and accelerate its growth in the medical field, Recondo Technology has secured a massive $20 million investment on behalf of Bregal Sagemount.
Recondo Technology, a health care software and cloud Solutions Company, specializes in connecting providers, payers and patients through its cloud computing solutions. The investment from Bregal Sagemount is in the amount of $20 million is expected to aid Recondo Technology in its development of seamlessly run insurance software.
“This investment will be used to significantly expand our sales and marketing efforts, take client service to a new level, and broaden our product offerings through internal development and strategic merger and acquisition (M&A) opportunities,” Recondo CEO Rick Adam said in a statement.
Recondo, based in Greenwood Village, CO, provides its software and services which includes insurance verification and revenue recovery to nearly 500 hospitals nationwide. With a 94 percent increase, and the addition of 266 new hospital customers during the 2012 fiscal year, investing in Recondo isn’t nearly that big of a gamble for Bregal Sagemount.
"Recondo brings innovative, best-in-class technology to the problem of proper payments for hospitals, Integrated Delivery Networks (IDNs) and Accountable Care Organizations (ACOs)," said Phil Yates, a founding Partner of Bregal Sagemount. "The US healthcare system spends 15+ percent of revenue to process and collect payments compared to one to two percent in other efficient markets. We are excited to invest in Recondo, the market leader changing this paradigm."
Bregal Sagemount is no stranger in making large investments into companies on the rise. Bregal is a growth-focused private equity fund and generally makes investments anywhere from $15 million, upwards towards $150 million.
”We are very pleased that the seasoned partners of Bregal Sagemount have placed their confidence in Recondo Technology," said Rick Adam, Recondo Founder and CEO. "This investment will be used to significantly expand our sales and marketing efforts, take client service to a new level, and broaden our product offerings through internal development and strategic merger and acquisition (M&A) opportunities."
Edited by Ashley Caputo