Canton-based Goodroot sells regulatory compliance business nearly 2 years after founding

Canton-based healthcare technology company Goodroot announced Wednesday that it has sold an affiliate to a Baltimore-based benefits compliance provider.

Goodroot sold ClearFile, which specializes in regulatory compliance, to Lumelight, in a deal completed less than two years after ClearFile’s founding.

Financial terms of the deal were not disclosed.

The sale reflects Goodroot’s strategy of incubating healthcare startups with capital and operational support, then positioning them for strategic exits. The company focuses on investments aimed at reducing healthcare costs and improving access.

ClearFile, led by President Joe Boyle, developed software that automates complex regulatory filings for health insurers, pharmacy benefit managers and government regulators.

The program handles requirements ranging from Affordable Care Act submissions to Medicare Advantage compliance and multi-state licensing.

“Joe came to Goodroot with a vision to solve a problem most people avoid: regulatory complexity,” said Michael Waterbury, Goodroot’s president and CEO. “We backed that vision with capital, talent and infrastructure — and in under two years, he built one of the most respected names in regulatory filing.”

Waterbury, a former health insurance executive, founded Goodroot in 2020. The company was named one of Inc. magazine’s “Connecticut Startups to Watch” in 2024.

Boyle, who will remain ClearFile’s president under Lumelight’s ownership, said the acquisition positions the company to expand its market reach. He also hosts “Regulatory Joe,” a podcast focused on healthcare compliance issues.

ClearFile will continue operating under its current leadership structure within Lumelight’s organization, the companies said.