BOSTON (Dec. 5, 2005) - HighRoads Inc., the leading provider of benefits
lifecycle management (BLM) solutions, has closed $8 million in Series-B
financing. New investor Egan-Managed Capital led the round and John Egan,
former executive vice president of EMC Corporation, will join HighRoads´
board of directors.
Existing investors Kodiak Venture Partners, RBC Capital and AH Ventures also
participated in the round, which brings the total raised by HighRoads to
approximately $31 million.
The funds will fuel HighRoads´ sales and marketing efforts as the company
scales to meet urgent demand for relief from annual double-digit increases
in healthcare benefits costs. More than 200 global leaders, including
Toyota, Staples, Florida Power & Light, Ford Motor Company and partners such
as Watson Wyatt have successfully utilized HighRoads´ technology-based
solutions to provide quality health and welfare benefits to competitive
workforces, more affordably.
"HighRoads is addressing the second highest cost concern for employers
today - employee benefits," said John Egan, managing partner for
Egan-Managed Capital. "The company has all the markings of a winner:
Satisfied blue-chip customers, innovative solutions, an experienced
management team and an incredibly hot market."
Employee Benefits - Reduce Cost, Not Quality
HighRoads, formerly IE-Engine, is pioneering the market for BLM solutions,
which give companies unprecedented access to information across multiple
benefit plans, processes and transactions to support informed
decision-making and uncover opportunities for streamlined management. This
insight enables employers, consultants and vendors to provide the highest
quality employee health and welfare benefits at substantially lower costs.
Employers and consultants realize three key advantages with HighRoads´
turnkey offerings, which apply data-centric workflow processes to employee
benefits programs:
* A competitive, auction environment where insurance providers ´bid´ for a
company´s business, routinely reducing contract costs by 4-6 percent
* Automated administration of tedious, paper-based management processes and
communication of summary plan descriptions
* Improved visibility into benefits expenditures to identify key savings
areas and support compliance efforts
"In the past year, we have seen explosive growth in demand for a solution to
curb annual increases in healthcare costs, which many executives feel
powerless to control," said Michael Byers, chief operating officer of
HighRoads. "The confidence of our current and new investors reflects the
unique value we deliver in ending the stand-off between providing benefits
and keeping employees."
About HighRoads
HighRoads (www.HighRoads.com) is the leading provider of Benefits Lifecycle
Management. Its technology-based solutions and services provide visibility
and enable collaboration throughout the design, procurement, management and
communication of employee benefits plans. HighRoads´ comprehensive
solutions for managing the benefits supply chain saves large employers
millions of dollars in benefits costs without sacrificing quality. Clients
include some of the world´s largest companies, such as Toyota, Staples, and
Watson Wyatt. Founded in 1999, HighRoads is a privately-held company that is
headquartered in Woburn, Mass.
About Egan-Managed Capital
Egan-Managed Capital (www.egancapital.com) provides funding for innovative
high-technology companies, delivering field-tested strategies, first-hand
technology expertise and hands-on management involvement. Some of the
region´s most successful start-ups have been funded by the firm, including
Network Engines, Softrax, Highground Software and Network Intelligence.
Founded in 1997, the firm has made more than 30 investments and currently
manages funds with $233 million in committed capital.
Egan-Managed Capital Media Contact:
Mike Shanahan
(617) 695-2600
HighRoads Media Contact:
Megan Boyaval
(617) 969-9192
mboyaval[at]corporateink.com
HighRoads Company Contact:
Petra Marino
(781) 503-4031
pmarino[at]highroads.com