(Reuters) – Navicure, a healthcare technology company backed by Bain Capital, is nearing a deal to acquire ZirMed Inc that will value it at around $750 million, people familiar with the matter said on Wednesday.
The deal underscores the appetite by private equity firms for companies that can harness technology to help hospitals and other healthcare providers improve efficiency and reduce costs.
The sources did not want to be named because the matter was private.
ZirMed did not immediately respond to requests for comment. Navicure declined to comment. Sequoia Capital, an investor in ZirMed, could not immediately be reached for comment.
ZirMed provides software to hospitals, physician practices and other healthcare organizations to assist them in revenue cycle management. It has grown rapidly in the past several years, acquiring a number of smaller firms that have built out its suite of software offerings, including Intelligent Healthcare and MethodCare.
It sold its value-based care analytics business to Dallas-based healthcare advisory firm Koan Health earlier this year.
Founded in 1999, ZirMed partnered with Sequoia Capital in 2009.
Sequoia, a prominent Silicon Valley venture capital firm, has worked with technology companies including Airbnb, WhatsApp, YouTube and Yahoo.
Bain invested in Navicure last year for an undisclosed sum.
Reporting by Carl O’Donnell; Editing by Leslie Adler