Bain nears US $2.6B deal for HealthEdge in healthcare tech play

USA – Bain Capital is on the verge of acquiring HealthEdge, a leading U.S.-based healthcare software provider, in a deal valued at US $2.6 billion including debt, according to sources familiar with the matter.

The transaction, expected to be announced shortly, underscores Bain’s strategic push into healthcare technology and highlights the ongoing appeal of software assets to private equity investors, despite a challenging macroeconomic environment.

The acquisition marks a significant exit for Blackstone, which bought HealthEdge in 2020 for US $700 million during a pandemic-era surge in healthcare investments.

Under Blackstone’s ownership, HealthEdge expanded its capabilities through key bolt-on acquisitions such as Wellframe and Altruista Health.

The impending sale is expected to deliver a strong return, with some reports suggesting a twofold gain.

Alongside Blackstone, minority stakeholders, including Coatue Management, are also planning to divest their shares as part of the transaction.

HealthEdge’s suite of products helps health insurers streamline core operations, manage claims, and design benefit packages—capabilities that have become increasingly valuable amid rising demands for digital transformation in healthcare.

In 2024, the company reported US $400 million in revenue and US $86 million in EBITDA.

For Bain Capital, this move aligns with a broader healthcare tech investment thesis. The firm, which oversees US $185 billion in assets, already owns Zelis—a major player in healthcare payments—and recently made a take-private offer for Surgery Partners.

Bain’s growing portfolio signals a strong conviction in the long-term value of tech-driven healthcare solutions.

Even as global M&A activity faces headwinds from interest rate uncertainty and geopolitical instability, the software sector remains a bright spot.

Recent high-profile deals include Clearlake Capital’s majority stake in Modernizing Medicine, valued at US $5.3 billion, and Siemens AG’s US $5.1 billion acquisition of Dotmatics.

Blackstone had initially attempted to sell HealthEdge in 2022 but failed to secure a deal at its desired valuation.