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TripleTree, LLC announced today that CareGain, Inc. was acquired by Fiserv, Inc. (Nasdaq:FISV). CareGain is the leading consumer-directed healthcare company that enables health plans to flexibly, rapidly and cost-effectively create and administer consumer-directed health plans while leveraging their own internal systems and infrastructure. Fiserv Health offers health plan management, pharmacy benefits management and business process outsourcing services to self-funded commercial and government employers and health plans. The acquisition of CareGain will serve as a key element of Fiserv's solution set for health plans and financial institutions to help them manage consumer-directed health plans and related healthcare spending accounts. CareGain will operate as a division of Fiserv Health. TripleTree, LLC, acted as exclusive financial advisor to CareGain.

“The merger not only better positions both CareGain and Fiserv, but benefits the advancement of the Consumer Directed Healthcare (CDH) industry as a whole,” said TripleTree Senior Principal Peter Erickson. TripleTree, an investment bank specializing in mergers and acquisitions with a focus on technology, business services and healthcare, capitalizes on today’s robust market by helping companies pursue multiple growth strategies in multiple vertical domains.

According to TripleTree Managing Partner Kevin Green, the acquisition parlays the convergence of healthcare, outsourcing, human capital management, and health and wellness and is a perfect example of non-traditional players entering new markets.

CareGain offers a fully integrated approach to administering consumer-directed healthcare accounts such as health savings accounts (HSAs), flexible spending accounts (FSAs) and health reimbursement accounts (HRAs). The power of these consumer-directed healthcare tools can have a positive effect on controlling healthcare costs by providing plan design flexibility for employers and insurers and better empowering consumers to deal with the rising cost and complexity of managing their healthcare expenses. The CareGain technology provides health plan administrators a fully integrated platform and offers consumers easy access to timely and relevant information.

CareGain engaged TripleTree based on the firm’s reputation and ability to create and secure merger and acquisition opportunities. In close partnership, TripleTree and CareGain evaluated prospective opportunities with select firms that would ultimately create a market leading combination. In the end, CareGain’s management and board selected Fiserv to create the next generation offering.

“Since our founding, CareGain was instrumental in bringing consumerism to the healthcare sector. Since then, we have played an important role in advancing the most innovative health plan designs, including health reimbursement accounts and health savings accounts,” said David Lenihan, Chief Executive Officer of CareGain. “To realize this growing market opportunity, we selected TripleTree as our advisors because of their unique understanding of the market changes that were at work and the broad range of companies who have a vested interest in this movement toward consumer directed health. The process consisted of TripleTree and CareGain working in a deliberate manner to identify a strategic partner that would broaden the use of our technology, intellectual property, and leverage the subject matter expertise we had accumulated. It culminated in the selection of Fiserv who will provide us the ability to be very innovative in how we address this market opportunity.”

“CareGain and Fiserv are among the most advanced firms in understanding the complexities and demands created through the adoption of HRA and HSA. The two combine highly complementary products and services, a shared strategic vision in addressing diverse customer needs, and an intent to further define a rapidly growing market,” affirmed Erickson.

As a research-based customized investment bank, TripleTree’s market expertise in technology, business services, and healthcare relies upon strong industry knowledge in a wide variety of segments. The firm’s Healthcare expertise ranges from IT to Chronic Care Management, to Mobile Wireless and Outsourcing. Within Business Services, its BPO and Human Capital Management work is a strong indicator that businesses are looking at Population Health Management and Consumer Directed Health. “Increasingly, service providers are leveraging numerous disciplines and expanding offerings in order to emerge as market leaders under various go-to-market models. “The acquisition of CareGain by Fiserv,” says Green, “is just the beginning of many major market-shaping events surrounding the convergence of technology and services.”

To review the CareGain Case Study, please go to the Engagements section of our website or click here.

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