MedImpact Expands Scope of Services with ScriptSave Acquisition
San Diego, CA – July 15, 2013 – MedImpact Healthcare Systems, Inc., the nation's largest privately held provider of pharmacy benefit management (PBM) services, today announced the signing of an agreement to acquire Medical Security Card Company, LLC, d/b/a/ ScriptSave, a consumer-focused PBM specializing in the 100 percent copay market, from its founder, Charlie Horn, and its private equity investor, Monitor Clipper Partners. After the transaction, ScriptSave will be a wholly owned subsidiary of MedImpact and continue to operate out of Tucson, Arizona.
"The acquisition of ScriptSave creates a greater ability to adapt to anticipated changes resulting from health care reform. This includes changes in the employer and individual health insurance exchange marketplace. It is also aligned with our strategy and relentless focus to deliver innovative products and services that better manage drug expenditures, improve health outcomes and, ultimately, increase consumer satisfaction," said Greg Watanabe, President of San Diego-based MedImpact.
With the acquisition, MedImpact enhances its proven PBM services through ScriptSave's consumer-focused pharmacy loyalty programs and integrated benefit design solutions. Integrated benefits create a supplemental product or benefit offering to members with high deductibles or otherwise unfunded portions of their health care plan. Like its current clients, MedImpact now provides ScriptSave clients the opportunity to capture all transaction data for better utilization management and improved outcomes.
"The ScriptSave and MedImpact synergies of building retail pharmacy centric benefit offerings is driven by a strong commitment and belief that retail pharmacists are a trusted source of health care information, and they play a critical role helping consumers improve their overall health outcomes," stated Lori Bryant, the CEO of ScriptSave.
"This acquisition brings to MedImpact a talented and seasoned management team which has successfully expanded the foundation of this company in implementing valuable and innovative programs for its customers and health care consumers. Our partners at Monitor Clipper, since their investment in ScriptSave in 2011, have accelerated that development and positioned us effectively for this transaction," said Charlie Horn, the founder and Chairman of ScriptSave.
The transaction is expected to close during the third quarter of 2013 and is subject to customary closing conditions and regulatory clearances.
Credit Suisse served as the sole financial adviser to MedImpact and is also providing financing for the acquisition. Dentons US LLP and Kirkland & Ellis LLP served as legal counsel to MedImpact. SunTrust Robinson Humphrey was the sole financial adviser to ScriptSave. Quarles & Brady LLP served as legal counsel to ScriptSave.
About MedImpact Healthcare Systems, Inc.
MedImpact Healthcare Systems, Inc., founded in 1989 and headquartered in San Diego, CA, is a PBM that combines subject matter expertise with innovative technology and services to deliver better health care outcomes and improve its clients'positions in the market. MedImpact provides PBM services to 47 million members of health plans, hospitals and employers in the U.S. and abroad. MedImpact's model is unique: avoiding conflict of interest by not owning mail order or specialty pharmacies and instead deriving revenue from effectively managing client pharmacy benefits. MedImpact's results are quantified through detailed peer analysis, demonstrating how the company can help its clients be market leaders rather than followers.
ScriptSave, founded in 1994, pioneered the U.S. unfunded prescription drug benefit market. Headquartered in Tucson, Arizona, ScriptSave is the leading integrated benefit programs and pharmacy loyalty card provider. Their solutions are currently utilized by over 350 insurance carriers, retail pharmacy chains and associations as a value-added benefit to their customers. ScriptSave's mission is to build loyalty and trust between consumers and their community pharmacy by offering innovative product designs and communication strategies that lower cost barriers and improve overall compliance and adherence.
About Monitor Clipper Partners
Monitor Clipper Partners is a Boston, MA-based independent private equity firm formed in 1998. MCP has invested in over 40 businesses in North America and Western Europe, focusing primarily on partnering with founders and owners of middle-market companies. MCP provides strategic and operational support to fundamentally transform the franchise value of its portfolio companies. MCP has invested approximately $2 billion in equity since its formation.
Gordon Romanas, Vice President of Marketing
MedImpact Healthcare Systems, Inc.
Lori Bryant, CEO
Medical Security Card Company, LLC