Location: Charlotte, NC
Investment Year: 2014 (DirectPath); 2015 (Flores); 2018 (merged companies)
In September 2018, Century led the merger of two of its portfolio companies: DirectPath, an industry leader in personalized benefits education, healthcare transparency and compliance, and Flores & Associates, a leading national administrator of tax advantaged consumer-based reimbursement plans. The merger creates a national integrated benefits service delivery provider with an end to end offering for education, administration, and compliance services. As a result of this merger, the new company will emerge as one of the largest CDHP third-party administrators in the country offering integrated, concierge-quality health care transparency and tax-advantaged consumer directed health plans to larger employers.
Century Investment Thesis
The merged company is uniquely positioned to solve the increasingly complex needs of benefits insurance brokers and their clients and leverage the vast network of combined brokers to cross-sell complementary services.
Century Value Add
- Leverage the companies’ collective sales resources to cross-sell the combined service offerings.
- Source and facilitate accretive M&A including FSA/HRA/COBRA businesses that can be transitioned to the Flores proprietary servicing platform.
- Unify employee census and benefits data to create unified, holistic data for employer, broker, and employee.
- Drive revenue and earnings mix of the combined company to focus on predictable PEPM services and leverage predictable cashflow to pay down debt and build equity value.