In June 2001, Arcapita and its co-investors acquired a controlling interest in Medifax-EDI, Inc. Headquartered in Nashville, Tennessee, Medifax EDI was a leading provider of medical eligibility transactions services in the United States and also provided claims management solutions, practice management systems and other financial services to both health care providers and payers through its Medical Services Division. In addition, Medifax was a leading provider of workers compensation prescription processing for retail pharmacies through its Pharmacy Services Division. Arcapita’s investment thesis was based on growth and consolidation in the healthcare IT marketplace, and worked closely with management during the investment holding period to grow Medifax’s core business and to make a number of add-on acquisitions. In December 2003, Medifax’s Medical Services Division was acquired by the Envoy division of WebMD Corp.

Investment Type

Private Equity


United States

Exit Date