Francisco Partners to acquire bswift from CVS Health

Francisco Partners, a global investment firm that specializes in partnering with technology businesses, has signed a definitive agreement to acquire bswift, a provider of benefits technology and services, from CVS Health.

Founded in 1996, bswift is a provider of software and services that streamline benefits and human resources administration, offering a cloud-based technology platform with best-in-class service.

Bswift helps its partners and employers simplify administration, manage employee benefits, reduce administrative costs and connect employees with resources needed to achieve their health ambitions, the company said. The company serves millions of employees with a single benefit destination across all life events from hire to retire.

[Read more: CVS Health names Jeffrey Balser to board of directors]

Bswift will continue to partner with CVS Health and Aetna, a CVS Health company, to provide benefits technology to its employees and client base, the company said.

“CVS Health and Aetna remain committed to bswift and to the clients, partners and members we support in benefits administration,” said Mark Santos, vice president, diversified commercial solutions at Aetna. “FP’s deep expertise in technology and proven track record in nurturing and growing technology businesses will enable bswift’s loyal base of employees to continue delivering innovative solutions.”

Justin Chen, partner at Francisco Partners, said, “We are excited to partner with bswift and help the team continue to grow its robust technology and service offerings across benefits and health care. bswift is uniquely positioned as a market leader to help employers navigate the evolving industry trends and opportunities to holistically engage employees through health, wellness and financial benefits.”

“We appreciate CVS Health’s work in growing this business and are confident that our partnership will help bswift drive crucial focus in executing on organic and inorganic growth strategies,” said Anders Mikkelsen, vice president at Francisco Partners. “We look forward to supporting the talented employees and management team.”

Financial terms of the transaction have not been disclosed. The acquisition is expected to close in the fourth quarter of 2022, subject to the satisfaction of customary closing conditions.

[Read more: CVS Health to acquire Signify Health for $8B]

Kirkland & Ellis served as legal advisor and Wells Fargo Securities served as financial advisor to Francisco Partners. CVS Health engaged Fried, Frank, Harris, Shriver & Jacobson and Dechert as legal counsel and Goldman Sachs as exclusive financial advisor.