Burgess Group, a Virginia-based medical billing technology provider with a prominent outpost in West Hartford’s Blue Back Square, is now owned by the $564-billion asset management giant Blackstone Group.
Burgess, which opened its 7,000-square-foot Connecticut office in 2013, was acquired this week by Massachusetts-based HealthEdge Software, a fellow provider of claims technology to payors. The deal comes about three months after funds managed by Blackstone completed their acquisition of HealthEdge.
Financial terms of the deals were not disclosed, though the Wall Street Journal reported that Blackstone paid $700 million for its majority stake in HealthEdge.
Burgess, which is headquartered in Alexandria, lists Aetna, the U.S. Department of Veterans Affairs, and several Massachusetts-based health plans, among others, as clients.
“The acquisition of Burgess is a great strategic fit for HealthEdge to enter the large, high-growth market of payment integrity, helping address the estimated $1 trillion in wasteful spending in the U.S. healthcare system, said Ram Jagannath, global head of healthcare for Blackstone Growth and chairman of HealthEdge. “We are excited to invest further in HealthEdge to continue building a market-leading software platform for health insurers.”
Burgess has approximately 20 West Hartford employees, a spokesperson said in an email Thursday, adding that there are no immediate changes or layoffs planned for the West Hartford office. The company expects to hire more people, she said.
