Connecture to be Acquired by Francisco Partners and Affiliates

Brookfield, WI-based Connecture, a provider of web-based information systems used to create health insurance marketplaces, announced its acquisition by entities affiliated with private equity firm Francisco Partners. “This transaction comes after a transformational year for our company and we look forward to the next phase” – President and CEO of Connecture, Jeff Surges.

Connecture is a web-based consumer shopping, enrollment and retention platform for health insurance distribution. It was established in 1997 to automate key functions in the health insurance distribution process, allowing its customers to price and present plan options accurately to consumers and efficiently enroll, renew and manage plan members.

Entities affiliated with Francisco Partners have agreed to pay $0.35 per share for each share of Connecture common stock not held by Connecture’s existing preferred investors, Francisco Partners and Chrysalis Ventures, and their affiliates. Upon completion of the transaction, Connecture will become a privately-held company owned by Francisco Partners, Chrysalis Ventures and their affiliates, which have all agreed to roll their existing equity into the acquiring company. The agreement includes a 45 day “go shop” period, although there can be no assurance that this process will result in a superior proposal.