Bluff Point Associates is investing $25 million in Netgain, a provider of IT-as-a-service (ITaaS) to health care providers and mid-market companies in highly regulated industries. NetGain had been seeking an investor to help fuel national expansion.
Netgain, founded in 2000, delivers specialty application hosting, desktop-as-a-service (DaaS) and end-point management for its clients. The company has 120 employees in Minnesota, Illinois and California. The investment will allow Netgain to invest in support, sales and marketing to accelerate growth in specific compliance-related vertical markets, the company said.
Bluff Point Associates invests in growth-stage information technology companies who serve the financial services and healthcare industries. The private equity firm previously invested in RazorInsights and DocuTAP, two EMR providers that had successful exits in the past 24 months. AthenaHealth acquired RazorInsights in 2015. Warburg Pincus acquired DocuTap in 2016.
ChannelE2E is checking to see if Bluff Point is acquiring a majority or minority stake in Netgain. Stay tuned for updates.