Make us your home page
Instagram

Trigaux: Why I love and hate deal by giant Express Scripts to buy Tampa's myMatrixx firm

One of the more dynamic up-and-comer technology firms in Tampa, myMatrixx was just bought by Express Scripts, a Fortune 100 company in St. Louis with more than $100 billion in revenues.

I love the deal because a smart local startup grew and was well rewarded by being noticed (then bought) by one of the larger companies in America. That's capitalism, and a dream of many young, growing businesses and their backers here to find an "exit" and reap their financial reward.

I also hate the deal because a smart local startup grew but can no longer strive to become one of the next-generation giants headquartered right here in Tampa Bay. While this metro area keeps saying it needs a big "breakout" company to prosper right here, our top young firms get acquired before achieving that status.

Daniel James Scott, CEO of the Tampa Bay Technology Forum, area advocacy group for the tech industry, says the deal is one of many to celebrate. "The myMatrixx acquisition by Express Scripts is the latest in a growing trend of technology-driven companies with exits over the last year, including Tower Cloud, Triad Retail Media and Valpak," he says.

"Overall, these acquisitions are a huge net positive for our region, creating additional local wealth, demonstrating that earlier investment capital has an opportunity to exit locally, and developing more investable teams here post-transition," says Scott.

So kudos to Tampa's myMatrixx, a 16-year-old pharmacy benefits manager that processes thousands of prescriptions every day. That skill set caught the eye of giant Express Scripts, the nation's largest pharmacy benefits manager, which announced the purchase of myMatrixx but did not disclose financial terms.

I'm guessing they were healthy numbers, as we'll examine in a moment. In 2015, myMatrixx had $123.28 million in revenue and more than 200 employees.

Express Scripts, No. 22 on the Fortune 100 list of largest U.S. public corporations, described this deal as taking an important step in expanding its "customized workers' compensation pharmacy solutions," stated Express Scripts. The company said the combined workers' compensation team will be led by Artemis Emslie, currently myMatrixx CEO.

myMatrixx was founded by Steve MacDonald, who serves as the firm's executive chairman. The CEO and vice chairman of parent company myMatrixx Holdings is Tom Cardy, a veteran entrepreneur and investor. Cardy describes the myMatrixx deal in a LinkedIn note, first thanking the folks who "trusted Steve MacDonald and my judgement back in 2006 and invested in a company with a vision and $300,000 of earnings."

Cardy says the sale of myMatrixx generated an "exceptional return" for early investors and is "very proud to have been part of the scrappy, extraordinary myMatrixx team. "Thanks for the memories."

Cardy plans to mix golf and time at his beach house this summer with the hunt for the next new thing.

Hurry back.

Contact Robert Trigaux at rtrigaux@tampabay.com. Follow @venturetampabay.

Trigaux: Why I love and hate deal by giant Express Scripts to buy Tampa's myMatrixx firm 05/18/17 [Last modified: Thursday, May 18, 2017 4:44pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Law firm's Russia ties prove nothing about Trump

    Business

    The statement

    "Law firm @POTUS used to show he has no ties to Russia was named Russia Law Firm of the Year for their extensive ties to Russia. Unreal."

    Sen. Chris Murphy, D-Conn., stands during a media availability on Capitol Hill, Monday, June 20, 2016 in Washington. A divided Senate blocked rival election-year plans to curb guns on Monday, eight days after the horror of Orlando's mass shooting intensified pressure on lawmakers to act but knotted them in gridlock anyway — even over restricting firearms for terrorists. (AP Photo/Alex Brandon)
  2. Pasco county lawyer disbarred for taking woman's money

    Real Estate

    NEW PORT RICHEY — The Florida Supreme Court on Thursday disbarred Pasco County attorney and former congressional candidate Constantine Kalogianis.

    The Florida Supreme Court on Thursday disbarred Pasco County attorney and former congressional candidate Constantine Kalogianis. 
[2016 booking photo via Pasco County Sheriff's Office]
  3. Rick Scott signs package of tax breaks

    State Roundup

    TALLAHASSEE — Gov. Rick Scott signed a tax cut package Thursday that — while vastly scaled back from what he wanted — eliminates the so-called "tampon tax" and offers tax holidays for back-to-school shoppers and Floridians preparing for hurricane season.

    Florida Governor Rick Scott signed a tax cut package that will cost state coffers $91.6 million during the upcoming year. [Joe Raedle | Getty Images]
  4. FBI probes fraudster's alleged church scam following Tampa Bay Times report

    Real Estate

    PLANT CITY — Once again, the FBI is investigating felon fraudster Victor Thomas Clavizzao.

    The FBI is investigating convicted mortgage fraudster Victor Thomas Clavizzao on new allegations following a Tampa Bay Times report.
[TImes file photo]

  5. Tampa Bay is ground-zero for assignment of benefits cases over broken auto glass

    Banking

    When Rachel Thorpe tried to renew her auto insurance last year for her Toyta RAV4, she was stunned to see her monthly premium had nearly doubled to $600. The Sarasota driver was baffled since her only recent claim was over a broken windshield.

    Auto glass lawsuits filed by a third party (through what's known as assignment of benefits) are skyrocketing in Tampa Bay.
[Times file photo]