Originally featured on PRNewswire
NEW YORK and MCKINNEY, Texas, Aug. 25, 2021 /PRNewswire/ — NexPhase Capital, LP (“NexPhase”), an operationally-focused private equity firm, today announced its investment in Selerix Systems, Inc. (“Selerix”), a leading provider of cloud-based benefits administration and employee engagement software. Terms of the transaction were not disclosed.
Founded in 2002, Selerix provides highly configurable software that facilitates benefits administration (Selerix BenSelect), employee engagement (Selerix Engage) and ACA reporting (Selerix ACA). With an active user base of over 8.3 million client employees, Selerix is trusted by more than 18,000 employer groups to manage the complexities of end-to-end benefits administration. Selerix’s software is used by an expansive network of leading brokerage firms and insurance companies and is widely recognized for its scalability, flexibility and integration capabilities that support the enrollment and administration of over $3 billion in voluntary benefits and over $11 billion in medical, dental and vision benefits annually.
By leveraging its extensive experience scaling software companies, NexPhase believes this strategic partnership will enable Selerix to continue its rapid growth as it extends its nearly 20-year track record of leadership in the benefits technology sector. The investment is also expected to further develop the user experience and simplification of Selerix’s technology platform and allow Selerix to maintain its leading security protocols.
Lyle Griffin, co-founder and President of Selerix, said, “Over the last two decades, we have grown Selerix into an industry-trusted, respected brand, and we’re looking forward to entering our next chapter of growth together with NexPhase. Our extraordinary team has delivered on our mission with enthusiasm, providing innovative services and solutions that meet the evolving needs of our clients and our industry. NexPhase is an ideal partner that brings a wealth of sector knowledge, operational expertise, additional resources and a collaborative approach as we continue to scale our business and execute our shared vision to serve our clients in exciting new ways. We are thrilled to partner with NexPhase and continue driving meaningful value to our entire ecosystem of stakeholders.”
Joel Killion, Partner at NexPhase Capital, said, “The benefits industry continues to quickly evolve, creating tremendous areas of opportunity for the integration of technology and service to meet modern HR demands. We are excited about Selerix’s numerous growth prospects, and this investment underscores our confidence both in Selerix’s highly scalable technology platform as well as the growing market for its industry-trusted software. At NexPhase, we are committed to nurturing the exceptional company culture and brand that has made Selerix a trusted name in the benefits industry. We look forward to working closely with Selerix’s leadership team to enhance and execute the company’s strategy to grow through continued product innovation and expansion into adjacent functional areas that will enable Selerix to better serve its constituents.”
Mr. Griffin will remain President of Selerix and serve on the company’s Board of Directors. Mr. Killion, in addition to Michael Roe, Operating Partner, and Robert Gartland, Principal, at NexPhase will also join the Board.
The NexPhase team has extensive experience investing in software companies. Current and previous investments include DealerOn, KnowFully Learning Group, Brandt Information Services, Inside Real Estate, Flexible Architecture & Simplified Technology, SwipeClock, Insurance Technologies and Mxi Technologies.
First Analysis served as financial advisor to Selerix and Haynes and Boone, LLP served as legal counsel. Lowenstein Sandler LLP provided legal counsel to NexPhase.
About NexPhase Capital
NexPhase Capital, LP is a thematic and operationally-focused private equity firm that invests in lower middle market growth-oriented companies within three distinct sectors: consumer, healthcare and software. The firm targets companies that have reached a growth inflection point and are seeking a value-added partner to help navigate the “next phase.” The NexPhase team has extensive industry and operational experience and NexPhase’s partners have invested together for over a decade. The firm has completed more than 80 investments including add-ons and targets control equity investments between $25 million and $150 million. For more information, please visit www.NexPhase.com.
About Selerix Systems
Selerix Systems produces software (Selerix BenSelect and Selerix Engage) utilized by employers, brokers, and carriers to conquer the chaos of benefits administration, employee engagement, and Affordable Care Act (ACA) reporting. The flexibility of the Selerix BenSelect platform accommodates both core and voluntary insurance products with ease. With an active user base of over 8.3 million client employees, Selerix’s innovative software solutions are trusted by organizations in a wide variety of industries, including healthcare, education, transportation/logistics, state and local government, nonprofit, high technology, and waste management. For more information, please visit https://www.selerix.com/.