Germantown-based VBA, a developer of cloud-based health benefits software, announced Tuesday that it has closed a $156 million growth equity transaction led by Spectrum Equity, a growth equity firm based in Boston and San Francisco.
Existing investor Arthur Ventures also participated in the funding round.
VBA says it seeks to improve the health care experience by eliminating data fragmentation and enabling interoperability through its suite of solutions. It serves the entire health care payer landscape. The company says its cloud-based software “enable payers to replace outdated legacy systems, grow their business and reduce costs.”
“At a time when increasing complexity of plan administration is straining current legacy systems, payers are turning to VBA to help them solve major challenges, from optimizing workflows to responding to customer needs.” said Michael Clayton, president and CEO of VBA. “We are delighted to bring on Spectrum Equity as a partner. Their success scaling other health care technology and enterprise software companies will be an asset to us as VBA enters its next phase of growth.”
“VBA delivers what payers need today – a smart, efficient way to administer plans with advanced technology,” said Jeff Haywood, managing director of Spectrum Equity. “We are impressed by their innovative approach and strong customer growth and retention, and we’re eager to leverage our past experience with payer facing tech companies to help them continue to scale.”
“We are excited to back Mike and his team at VBA and accelerate the company’s strategic growth plans” said Michael Radonich, principal at Spectrum. “Our investment will go towards developing future products and solutions and ensuring the company has the infrastructure and resources needed to support its growing customer base.”
With the investment, VBA will add Haywood and Radonich to its board of directors.
