Cotiviti, an Atlanta-based provider of payment accuracy and analytics-driven solutions, has been taken private and acquired by Verscend Technologies, a Waltham, Mass.-based portfolio company of Veritas Capital, for $4.9 billion.
Verscend President and CEO Emad Rizk, M.D. will keep his title for the combined business, which will retain the the Cotiviti name, according to a news release. The company will operate as a healthcare information technology company able to apply analytic insights, market expertise and other services to tackle payment accuracy, fraud, waste, risk adjustment, reimbursement, population health management and network performance.
“Both companies are customer-driven innovators that share a similar mission: to help our clients improve healthcare affordability, reduce waste, and identify the best path to better outcomes,” Rizk said in a statement. “With our new capabilities across payment, quality, risk, and the combination of clinical and financial data, Cotitivi will be unmatched in its ability to create differentiated value for its clients.”
The acquisition is just the latest for Veritas Capital; The portfolio company most recently acquired GE Healthcare’s ValueBased Care Division and has made previous investments in Truven Health Analytics and Verscend.
“A core tenet of Veritas’ investment philosophy is identifying organizations that are positioned to have transformational impact in their respective domains. We see the combination of Cotiviti and Verscend as bringing much needed precision and insight to the healthcare system,” CEO and managing partner at Veritas Capital Ramzi Musallam said.
Cotiviti shareholders will receive $44.75 in cash for each share of Cotiviti common stock they hold. Following the transaction and approval from Cotitivi shareholders, shares of Cotiviti common stock were removed from listing on the New York Stock Exchange.
Just last year, RowdMap, Inc., an analytics company that helps health plans, physicians and hospitals in 48 states succeed in value-based payment models, was acquired by Cotiviti for $70 million, according to Crunchbase.
