HealthEdge notches $13M from Psilos Group

Medical claims software maker HealthEdge Software Inc. reports reaching a $13 million investment commitment from Psilos Group, a New York private equity firm.

HealthEdge, a Burlington-based developer of health care claims-administration software, plans to use the funds from Psilos Group to increase the size of its business and to invest in product development, CEO Rob Gillette said.

Psilos, which has more than $500 million under management, invests in health care information technology and other medical technologies.

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The HealthEdge investment is expected to be made in a series of tranches, but Gillette declined to disclose specifics about the tranche sizes. The deal would raise the total amount of capital invested in HealthEdge to at least $27.6 million, Gillette said.

In January, HealthEdge, which was founded in 2004, closed on the second tranche of a $2 million round of funding from Psilos.

HealthEdge's software is based on intellectual property from deNovis Inc., where Gillette served as executive vice president of products and technology during the final four months of the Lexington-based company's operations.

HealthEdge claims three customers, including Florida-based CareGuide Inc. and Canton-based OneBeacon Insurance Group Ltd. Gillette declined to disclose the identity of the third customer.