Mubadala invests in US-based HealthTech firm – Zelis

Mubadala Investment Company, the Abu Dhabi-based investment firm, has announced its strategic entry into the US healthcare technology space with a minority stake acquisition in Zelis (as previously rumored). Known for its innovative healthcare financial solutions, Zelis is set to benefit from this collaboration, which highlights Mubadala's growing focus on healthcare IT. The deal positions Mubadala alongside Norwest and HarbourVest as investors, while Parthenon and Bain Capital retain their roles as majority owners.

"We are delighted to announce our investment in Zelis, a company whose thoughtful and integrated approach to healthcare payments sets it apart from its peers," said Mina Hamoodi, Head of Healthcare Investments at Mubadala.

How does it work?

Zelis is modernizing the healthcare financial experience with its connected platform that bridges gaps between payers, providers, and patients. By aligning their interests, the company helps reduce costs while improving care outcomes. Zelis serves over 750 payers — including top national health plans, regional insurers, and self-insured employers — as well as millions of providers and consumers.

The platform — built by healthcare experts — identifies systemic inefficiencies, optimizes processes, and solves challenges holistically. Its technology-driven approach delivers measurable results, making it a leader in healthcare payments and financial solutions.

"Zelis is uniquely aligning the interests of payers, providers, and members in a way that reduces cost and improves care outcomes," noted Amanda Eisel, CEO of Zelis.

Why does it matter?

This partnership marks a significant milestone for Mubadala as it enters the US healthcare technology sector, particularly in priority sub-sectors like payer and provider tech. By investing in Zelis, Mubadala is contributing to efforts aimed at streamlining the fragmented US healthcare financial system.

The deal is a strategic move that demonstrates Mubadala's confidence in Zelis' management team and underscores the potential of healthcare IT to deliver better outcomes across the care journey.

"This is the largest investment we have made in the healthcare space and our first meaningful venture into payer and provider tech," said Mina Hamoodi. "We look forward to contributing to Zelis' continued success."

The context

The US healthcare system is often criticized for its complexity and inefficiencies, particularly in financial transactions between payers, providers, and patients. Zelis addresses these challenges by leveraging cutting-edge technology to streamline processes, reduce costs, and improve outcomes.

This investment is not just a financial transaction but a strategic alignment with Mubadala's vision to support impactful, tech-driven solutions in healthcare. With Goldman Sachs and J.P. Morgan acting as financial advisors, the transaction represents a high-stakes collaboration among some of the industry's most prominent players.

The deal closed on November 26, 2024, marking a new chapter for Zelis and its mission to create a seamless healthcare financial ecosystem.