NEW YORK - SunFireMatrix, Inc., a software and technology services provider in the insurance and health plan sector, has been acquired by funds managed by global investment firm KKR. The announcement made today indicates a strategic partnership aimed at enhancing SunFire's growth in the healthcare market.
Stone Point Capital LLC, the former majority owner of SunFire, will retain a significant minority stake in the company. The financial terms of the deal have not been disclosed.
SunFire is reputed for its software as a service (SaaS) technology that supports the Medicare market, offering solutions for brokers to sell Medicare Advantage, Prescription Drug, and Medicare Supplement plans. Their platform also facilitates post-enrollment engagement through third-party verification technology and advocate services, emphasizing their commitment to improving senior care.
David Graf, CEO of SunFire, expressed enthusiasm about the partnership with KKR, citing the investment firm's support as a catalyst for continued growth and service enhancement for customers and beneficiaries. KKR's investment is channeled through its Health Care Strategic Growth (HCSG) Fund II, which is dedicated to investing in high-growth healthcare companies.
KKR's Ali Satvat and Johnny Kim praised SunFire's customer-centric approach and mission-driven ethos, emphasizing their anticipation for a collaborative growth phase. Similarly, Nick Zerbib from Stone Point Capital expressed delight in continuing the partnership with SunFire and welcoming KKR into the fold, highlighting SunFire's innovative solutions and leadership in the market.
Evercore and William Blair served as financial advisors to KKR and SunFire, respectively, in the acquisition process.
KKR is known for its diverse investment portfolio, including private equity, credit, real assets, and strategic partnerships in hedge funds. Stone Point Capital, based in Greenwich, CT, focuses on financial services industry investments and offers private equity and credit through various funds.
The acquisition of SunFire by KKR funds, with Stone Point Capital remaining as a significant minority shareholder, represents a strategic move to bolster SunFire's technology and service offerings in the healthcare sector. The information is based on a press release statement.
InvestingPro Insights
As KKR embarks on its strategic partnership with SunFireMatrix, Inc., it's worth noting some key financial metrics and insights that underline KKR's robust investment capabilities. According to InvestingPro data, KKR has a market capitalization of $88.5 billion, showcasing its significant presence in the investment sector.
The firm's P/E ratio stands at 23.54, reflecting investor expectations of future earnings growth, while the adjusted P/E ratio for the last twelve months as of Q4 2023 is slightly higher at 24.04.
KKR has demonstrated impressive revenue growth, with a staggering 238.39% increase over the last twelve months as of Q4 2023. This remarkable expansion is a testament to KKR's successful investment strategies and its ability to identify and nurture high-growth opportunities.
InvestingPro Tips highlight that KKR has raised its dividend for four consecutive years and has maintained dividend payments for 15 consecutive years. This consistent dividend history signals a strong commitment to shareholder returns. Additionally, analysts predict that KKR will be profitable this year, which is corroborated by the company's profitability over the last twelve months.
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