2023 was a rough year for startups looking for an exit ramp. The IPO market was largely sealed off, while high interest rates calmed much of the overall M&A activity.
But some experts say there are reasons to be optimistic in 2024, as interest rates stabilize and pent up demand could mean an influx of M&A deals in the coming months.
The local Southeast startup landscape is starting off with some positive news on the M&A front.
Earlier this month FeatherPay, an Atlanta-based payments startup in the medical and dental space, announced it was acquired by iCoreConnect Inc. The Florida-based NASDAQ-listed software company focuses on streamlining healthcare communications while increasing workflow productivity and customer profitability.
Hypepotamus readers might remember the FeatherPay team from a 2021 feature article, when the startup was known as Green Feather and was focused on bringing flexible payment options to patients. The startup originally spun out of Atlanta-based Ally Commerce, but pivoted and changed its name to FeatherPay after narrowing in on the platform’s product strategy, said CEO and co-founder Craig Haynor.
While details of the acquisition were not disclosed, Haynor said that iCoreConnect initially reached out to FeatherPay after seeing the startup’s “robust technical performance” and its ability to “seamlessly integrate” with its product.
Haynor told Hypepotamus that an acquisition at this point in the startup’s lifecycle was the “best path for [FeatherPay] to make the greatest impact to the broadest audience of healthcare providers and patients alike in the shortest amount of time.”
The entire FeatherPay team is joining iCoreConnect, Haynor confirmed to Hypepotamus.
“We’re joining a group of exceptional builders and innovators, where our collective talents will continue to flourish and redefine industry standards, all while fulfilling our original mission of being healthcare’s best payment experience,” he added. “We also saw in the iCoreConnect team the same philosophy for success that we subscribe to: rigorously maintaining an intense focus on the fundamental user problem, while standing in front of customers over a long period of time, and simply refusing to give up no matter what happens.”
Haynor will now serve as iCoreConnect’s VP of Fintech, a new division within the company. Featherpay’s technology serves as the “cornerstone” of the new division, according to an iCoreConnect press release.
