HP Spin-Out Creates a New Market Leader in Sentillion
In the mid 90's Hewlett Packard and the Duke University Medical Center began collaborating on a common standard for exchanging patient information so software applications from multiple vendors could be integrated. This work led a consortium of vendors (including HP, 3M, GE, Microsoft and IDX) to establish the Clinical Context Object Workgroup (CCOW). In 1998, HP's Medical group shifted their strategy away from applications software. Newbury learned this through contacts at HP's Palo Alto research labs and approached Robert Seliger, who was directing HP's development effort in the area, about spinning the effort off into a new company. Together we achieved a successful spin out of the project, including negotiating acceptable terms with HP, an agreement with Duke University, and the securing of adequate financing. Since then, Sentillion has gone on to raise two additional rounds, each at increased valuations, for a total capital investment of $30 million.
Bruce Bauer has been on Sentillion's board since inception, advising on product and business strategy, management and board development, and financing options. While not always a smooth path to growth, today Sentillion has emerged as the clear market leader in Identity and Access Management (IAM) for Healthcare with 41% share, and is a leading vendor among all pure play IAM companies. Sentillion has grown revenues at 57% annually for the past three years, achieved an ASP of about $1 million, and has closed deals with over 500 hospitals constituting over 225,000 live users. In 2007 Sentillion will advance its virtual vThere product for remote access into markets outside of Healthcare, and build on its successful UK market penetration. To support this growth, Newbury organized the recruitment of additional senior management and led the recruitment of Nancy Ham as President, with Mr. Seliger continuing as CEO. Ms. Ham provides a wealth of healthcare IT management experience to the company, along with the skills and experience to help expand into new markets, and build out the balance of the management team. Newbury is currently working toward achieving investment liquidity through M&A initiatives.