Partner Company Overview
Portico Systems’ innovative solutions enable health plans to reduce administrative, medical and IT costs. Portico’s exclusive focus on provider operations has allowed Portico to design the only modular end-to-end provider platform.
Partnering with Safeguard
Since August 2006, Safeguard has deployed $9.3 million of equity and $5.0 million of debt in Portico. During its five years as a Safeguard partner company, Portico has emerged as a leading provider of software solutions that empower health plans to transform the performance of their provider networks and significantly reduce their administrative expenses. As of July 2011, Portico was serving 33 customers with 42 million members annually.
“Five years ago, when Safeguard first provided us with growth equity capital as part of our Series A financing, we were a fledgling company with a big dream. Today, we find ourselves at the forefront of revolutionizing the way payers manage relationships with providers – ultimately driving down costs and increasing quality of healthcare. We couldn't have done it without the support and commitment from our investors and our employees. We are excited about the potential that this acquisition offers Portico and look forward to continuing to execute against our game plan in this next chapter of our company’s history.”
Ned Moore,
Chairman, CEO and co-Founder, Portico Systems (June, 2011)
Results
In July 2011, McKesson acquired Portico for $90 million, in cash, representing a 4x cash-on-cash return for Safeguard.
Since Safeguard’s initial capital deployment in Portico, the company emerged as a leading provider of software solutions that empower health plans to transform the performance of their provider networks and significantly reduce their administrative expenses. The $90 million acquisition by a top-tier, multinational corporation was evidence that Portico was a high-value, high-growth company.
McKesson is dedicated to delivering the vital medicines, supplies and information technologies that enable the health care industry to provide patients better, safer care. In addition to its pharmaceutical distribution solutions, McKesson is a leader in healthcare information technology for payers and providers with solutions that include point-of-care evidence-based decision support, care management, medical and payment policy automation, claims auditing and fraud, waste and abuse programs.
