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HealthEZ Completes Majority Recap by Abry Partners

July 13, 2020, 08:00 AM
Filed Under: Healthcare

Lincoln International announced that The Araz Group, Inc. (d/b/a HealthEZ), a leading independent third-party administrator (TPA) of self-funded medical plans, has received an investment from Abry Partners LP, a private investment firm focused on investing in and building market-leading middle market businesses.

Founded in 1982 by industry luminary Nazie Eftekhari and headquartered in Minneapolis, Minnesota, HealthEZ is driven by the principles of simplifying and making more transparent the byzantine process of accessing and financing healthcare for employers, their employees and the physicians and other providers who treat them. HealthEZ has established a unique value proposition in the self-funded medical space with a particular focus on the small and mid-sized business (SMB) market. The company boasts many industry innovations including the nation's first captive preferred provider organization (PPO) network, as well as a proprietary patient payment technology. HealthEZ plays an important role at the center of the self-funded benefits space, and is a valuable partner to employers, employees, brokers, underwriters and healthcare providers.

"We are thrilled with the outcome Lincoln helped us achieve on this transaction. Lincoln's domain expertise of the self-funded marketplace and contacts within the buyer universe, combined with a well-managed process by a team of highly dedicated senior bankers, supported the realization of the optimal outcome for the shareholders," said Executive Chairwoman of HealthEZ, Nazie Eftekhari. "My team and I could not be more excited to partner with Abry to continue growing the company I founded nearly 40 years ago."

"We are grateful to the company's shareholders for selecting Lincoln International as its advisor. This represents another successful transaction for our team in the payer services sector. Despite the challenging macro-economy, HealthEZ, with its unique business model, performed well. Abry will be ideal partners for management in taking the business to the next level," said Barry Freeman, Managing Director and Co-head of Lincoln International's Healthcare Group.

Shahab Fatheazam, Managing Director and Vice Chairman of Lincoln International's Healthcare Group, added, "We are proud to have worked with the HealthEZ team and look forward to seeing the company's continued evolution under the partnership with Abry. The company will continue to be a disrupter and innovator for years to come."

T.J. Rose, Partner of Abry, said, "We're incredibly impressed by the business Nazie and the HealthEZ team have built and we are proud to become a partner in the next phase of HealthEZ's growth. The HealthEZ team has done a tremendous job of helping small businesses navigate the complex self-insured landscape and we look forward to driving future growth through continued investment in technology and people."

Lincoln International acted as the exclusive financial advisor for HealthEZ, working closely with the company's management team and shareholders throughout the sale process. This included providing advisory expertise and managing the marketing, negotiation and due diligence phases of the transaction. The terms of the transaction were not disclosed.

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