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Private exchange tech firm raises $70 million

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Great Hill Partners, a private equity firm, has agreed to pay $70 million for a minority stake in PlanSource, an insurance sales exchange and plan administration systems company.

PlanSource, which is now based in Orlando, Fla., says it will use the money to develop new products and expand its operations.

Great Hill will get two seats on the PlanSource board. The new board members from Great Hill will be Chris Busby and Matthew Vettel.

Other investment firms with seats on the PlanSource board include Lemhi Ventures and Timucan Asset Management.

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PlanSource has alliances with units of MetLife Inc. (NYSE:MET) and Humana Inc. (NYSE:HUM), and it has supplied the technology systems supporting Avenue H, the Small Business Health Options Program (SHOP) exchange system in Utah.

Avenue H is providing coverage for 677 employer groups with about 14,000 covered lives, according to an exchange performance report.

In many other states, managers of Patient Protection and Affordable Care Act (PPACA) public exchange programs have had a hard time putting SHOP sales and enrollment systems online, or even getting SHOP plans to market through traditional sales channels.

See also: PlanSource Buys Enwisen Broker Tools