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Falcon Advises Capsule Technologies, a Portfolio Company of Francisco Partners, in the Divestiture of its 2net Motion Business to UnitedHealthcare

WAYNE, PENNSYLVANIA – June 30, 2019: Falcon Capital Partners, LLC (“Falcon”), a leading middle-market investment bank, is pleased to announce the divestiture of 2net’s Motion business within Capsule Technologies (“CapsuleTech”), a portfolio company of Francisco Partners (“FP”), to United HealthCare Services, Inc. (“UnitedHealthcare”). CapsuleTech is the rebranded entity of Qualcomm Life.

Qualcomm Life was one of the first telemedicine companies to target the challenges faced by healthcare providers in gathering digital health data. Its 2net Hub was developed as a portal to handle data from clinical-facing devices – medical or clinical grade data – as opposed to data gathered and stored on consumer products or entered by the patient. The company hit its stride just as consumer-facing wearables like activity trackers and smartwatches were showing up on the connected health radar and patients were asking their doctors and nurses to include step counts and sleep measurement in care management plans. (Source: mHealth Intelligence)

In February 2019, FP acquired Qualcomm Life, Inc. a wholly owned subsidiary of Qualcomm Incorporated and renamed as Capsule Technologies, Inc. to continue operating its two distinct business segments: Capsule (a leading provider of medical device connectivity solutions for hospitals) and 2net (a medical grade mobile connectivity platform). 2net Platform and Hub unlock vital health and therapy data for integration with virtually any system, application, or portal. The products interconnect wireless medical devices via cloud-based solutions so that biometric information is easily accessible by device users, health care providers and payors, and caregivers. 2net has over 40 customers and collaborators across health insurance payers, pharmaceutical companies, and medical device manufacturers. 2net’s revenue is generated from two primary product lines: Motion and RPM (Remote Patient Monitoring).

For the last several years, UnitedHealthcare has partnered with Qualcomm Life to deliver UnitedHealthcare Motion™, a wellness program that provides employees with activity trackers at no additional charge and enables them to earn up to $1,500 per year by meeting certain goals for the number of daily steps. Following FP’s acquisition of Qualcomm Life, UnitedHealthcare acquired the Motion assets of 2net from Capsule to continue the expansion and further development of its health and wellness programs.

Falcon served as sole financial advisor to Capsule Technologies and Francisco Partners. The terms of the transaction were not disclosed.

This transaction represents Falcon’s continued work in healthcare information technology (HCIT) and its third corporate divestiture in two years. The Falcon deal team was led by Managing Director Ted Stack and Senior Associate Conrad Olenik. For more information please contact Ted at tstack@falconllc.com, 610-989-8901 or Conrad at colenik@falconllc.com, 610-989-8905.