Boston Tech Watch: Humana, SmartBear, Nexamp, Veritas & More
This week in Boston tech, we’re tracking a massive healthcare analytics acquisition, a new technology incubator from health insurer Humana, a Mitsubishi subsidiary’s latest investments in the local energy sector, and more deals. Read on for details.
—Verscend Technologies said it completed its $4.9 billion acquisition of Atlanta-based Cotiviti (NYSE: COTV), a union of companies providing healthcare data analytics and services to insurers and other clients. The combined will go by Cotiviti, according to a press release.
Waltham, MA-based Verscend was previously known as Verisk Health. It was sold two years ago by Verisk Analytics (NASDAQ: VRSK) to private equity firm Veritas Capital for $820 million. Veritas has made several large digital health deals in recent years; it sold Truven Health Analytics to IBM Watson Health for $2.6 billion in 2016, and this year it acquired GE Healthcare’s “value-based care division” for $1.05 billion.
—Power company Diamond Generating, a Mitsubishi subsidiary, said it acquired a controlling stake in Boston-based solar energy firm Nexamp, two years after Diamond Generating invested in Nexamp. The purchase price wasn’t disclosed in a press release announcing this month’s deal, but a document filed with the SEC shows Nexamp recently raised $54 million in equity funding. A spokesperson declined to comment on the document.
Diamond Generating also acquired Boston Energy Trading and Marketing from NRG Energy this month.
—SmartBear Software, a Somerville, MA-based provider of tools for software developers and testers, said it reached a deal to buy Zephyr, a San Jose, CA-based software testing business. The companies didn’t share the deal terms.
Private equity firm Francisco Partners acquired a majority stake in SmartBear last year; a source told Xconomy the deal had an enterprise value of $410 million. SmartBear is profitable and generating more than $100 million in annual revenue, a spokesperson said in May, when the company announced the acquisition of France-based Hiptest.
—Humana (NYSE: HUM), the Louisville, KY-based health insurer, announced it’s opening an office in Boston’s Seaport neighborhood where it will develop digital health and analytics products and services. The company said it plans to employ up to 250 people at the incubator, where it will also work on creating “a new health experience for seniors,” according to a press release.
—With the help of a $20 million Series B funding round, U.K.-based Salary Finance said it’s making a push into the U.S. and has established its American headquarters in Boston. The firm partners with employers to offer their employees online financial education and tools for saving money and accessing loans with favorable interest rates.