Passport Health Communications will use a $232 million investment from two private-equity firms to fuel strategic growth plans and provide cash returns to some of its early investors.
Spectrum Equity Investors and Great Hill Partners, both of Boston, led the investment round that also included Primus Capital Funds, which had been a primary investor during a $70 million equity deal two years ago for the company. Franklin, Tenn.-based Passport, which has been busy in recent months hiring new employees and completing an acquisition, will still be owned by its management team and the collective group of investors, a spokesman said. The new investment does give Spectrum and Great Hill a combined controlling interest in the company.
Some of 12-year-old Passports angel investors will take the cash return while others will roll their share back into the company, the spokesman said. Passport, which focuses on revenue-cycle management products, also is in active acquisition discussions with two companies, he added.
As part of the deal, two executives from Spectrum and two from Great Hill will join Passports board of directors.