CoverMyMeds to be Acquired for $1.1 Billion by McKesson Corporation

CINCINNATI, NEW YORK, SEATTLE, January 30, 2017 – SaaS Capital, the leading provider of Credit Facilities to SaaS companies, congratulates former portfolio company CoverMyMeds on signing a definitive agreement to be acquired by McKesson Corporation for $1.1 billion. 

CoverMyMeds, a leader in healthcare technology, joined the SaaS Capital portfolio in 2013 and later received funding from Francisco Partners. Following the close of the transaction, CoverMyMeds will operate as an independent business unit under its existing leadership team.

"We could not be happier for the team at CoverMyMeds. The acquisition validates the value they have brought to their customers for many years, and provides a wonderful new platform for them to grow," said Todd Gardner, Founder and Managing Director of SaaS Capital. "It is also proof that you can build a billion dollar SaaS enterprise in the Midwest, and do it without mountains of VC money.”

"Early in their development, CMM was looking for growth capital, but was reluctant to go down the PE/VC path because the team had already built several firms that way, and were looking to maintain more control and ownership this time around. Luckily for us, they knocked on our door, and we put a debt facility in place that allowed them to continue to invest in growth without selling a substantial part of the business. It was a true win-win."

SaaS Capital Credit Facilities are specifically designed to fund the growth of a SaaS business in lieu of a round of equity, without sacrificing significant ownership or control. The SaaS business model is well suited to enhance shareholder returns through the use of debt because even a modest increase in annual recurring revenue generates equity value that far outweighs the cost of capital. SaaS portfolio companies have increased their value by 2x to 110X the cost of the facility.

About CoverMyMeds

CoverMyMeds is a leader in the medication benefit process and one of the fastest growing healthcare information technology companies in the US. We help physicians, pharmacists, and their staff complete medication approval requests for any drug and all plans. Our technology integrates with payers, EHRs and pharmacy systems to create an efficient electronic process for all participants. For more information, visit www.covermymeds.com.

About McKesson Corporation

McKesson Corporation, currently ranked 5th on the FORTUNE 500, is a healthcare services and information technology company dedicated to making the business of healthcare run better. McKesson partners with payers, hospitals, physician offices, pharmacies, pharmaceutical companies, and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. For more information, visit www.mckesson.com.

About SaaS Capital

SaaS Capital is the leading provider of long-term Committed Credit Facilities to SaaS companies. Focusing exclusively on the SaaS business model, SaaS Capital delivers faster decisions, more capital, and longer commitments. SaaS businesses have used SaaS Capital's Committed Credit Facilities, instead of equity, to finance growth and create hundreds of millions in enterprise value without sacrificing significant ownership or control. Also, through its partnership with DH Capital, a boutique investment banking advisory firm, SaaS Capital can assist with M&A and capital raising services. SaaS Capital has offices in Cincinnati, New York, and Seattle. Visit www.saas-capital.com to learn more. 

This new facility is substantially larger than our previous line of credit and features a structure and covenants designed specifically for growing SaaS companies.

Anthony Mazzarella

CFO, Accelerize Inc.

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