Blackstone Group Inc. is buying a majority stake in a health-care software company—the latest example of its strategy to invest in fast-growing firms. The private-equity giant is buying a stake in HealthEdge, which makes administrative software for health insurers, Blackstone said Monday. The Wall Street Journal reported earlier on the deal. The companies didn’t disclose the financial terms of the deal, but a person familiar with the matter said it values HealthEdge at around $700 million, including debt. The vast majority of Blackstone’s investment will come in the form of equity, the person said, aiding the firm’s ability to get the deal done in the face of credit-market turmoil related to uncertainty around the coronavirus outbreak. With offices in Burlington, Mass., and Powell, Ohio, HealthEdge makes cloud-based software that aims to help health insurers administer benefits, configure plans, manage providers and enroll participants. Last month, the company said its revenue grew by over 30% in 2019 as its customer base grew by 25%.
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