FCA Venture Partners’ Portfolio Company Lumere Acquired by Global Healthcare Exchange
Nashville, TN – Tuesday, January 14, 2020 – FCA Venture Partners (“FCA”) announced today its portfolio company, Lumere, Inc., has been acquired by Global Healthcare Exchange, LLC (“GHX”) and will operate as a wholly owned subsidiary. Financial terms were not disclosed.
FCA led Lumere’s $4M Series A round of financing in March 2014, investing $3.2M in the company when it had nine employees and less than $1M in annual revenue. Since then, the company has rapidly expanded, raising a $10M Series B round of financing in 2016, in which FCA participated, and growing the Lumere team to approximately 100 employees. The acquisition by GHX was an exceptional outcome for Lumere and resulted in a significant return on investment for the limited partners in FCA’s fifth fund.
Lumere, a Chicago-based company, is a leading provider of evidence-based data and analytics solutions that enable healthcare organizations to build clinically integrated supply chains and optimize medication formulary management. By providing both physicians and hospital leaders with evidence-based data and analytics they have previously lacked, Lumere accelerates their client’s ability to optimize patient care and ensure device and drug expenditures are supported by clinical outcomes. Spend on medical products and drugs represents one of the fastest growing expenses for U.S. health systems. The combination of Lumere's capabilities with GHX's unmatched network of providers and suppliers will enable the company to create the gold standard for device and drug utilization and purchasing decisions needed to optimize patient care and value.
John Burch, Managing Partner at FCA Venture Partners, has served on the Lumere board of directors since 2014. “We had a fantastic experience working with the Lumere management team and are thrilled with this outcome. The strategic fit with GHX will enable Lumere to scale their solution to more health systems and continue to help lower healthcare costs and improve the quality of care nationwide. Lumere exemplifies our investment strategy of finding companies with technology solutions that are making healthcare faster, better and less expensive, while improving the quality of care and the patient experience.”
“We’ve had a great experience working with the FCA Venture Partners team for the last several years. They have been consistent supporters of the business and our mission to positively impact healthcare,” added Hani Elias, co-founder and CEO of Lumere. “FCA’s strategic advice, introductions to customers and partners, and deep understanding of the healthcare industry has contributed to our success. We look forward to working with GHX to foster more meaningful collaboration between supply chain professionals, clinicians and administrators to improve patient care.”
The acquiring company, GHX, is a healthcare business and data automation company, empowering healthcare organizations to enable better patient care and maximize industry savings using its cloud-based supply chain technology platform. GHX brings together healthcare providers, manufacturers and distributors in North America, and Europe, who rely on proven healthcare-focused technology and comprehensive data to automate business processes and make more informed, timely and fact-based decisions. Solutions span procurement and accounts payable automation, contract and inventory management, vendor credentialing and management, business intelligence, payment management and other supply chain-related tools and services. GHX has relationships with hospitals representing more than 80% of licensed beds in the United States and thousands of suppliers. No other company has a greater volume of transactional data on its platform.
About FCA Venture Partners
Founded in 1996, FCA Venture Partners has a long history of investing in successful healthcare entrepreneurs. The firm is passionate about building sustainable businesses and providing strategic value to their portfolio companies. FCA invests $3-6M in fast growing healthcare technology and services companies making processes in the industry faster, better and less expensive, while improving the quality of care and the patient experience. Located in Nashville and deeply involved in the growth of the U.S. healthcare community, FCA Venture Partners is poised to take advantage of disruptive opportunities that help move healthcare forward.