Verscend Technologies, Inc., Completes Acquisition of Cotiviti Holdings, Inc.
27 August 2018 - 11:15PM
Business Wire
The combined healthcare information technology
company plans to operate privately as Cotiviti, with Dr. Emad Rizk
as president and chief executive officer
Verscend Technologies, Inc. (“Verscend”), a portfolio company of
Veritas Capital (“Veritas”) and a leader in data-driven healthcare
solutions, has completed its acquisition of Cotiviti Holdings, Inc.
(“Cotiviti”), a leading provider of payment accuracy and
analytics-driven solutions focused primarily on the healthcare
industry. Emad Rizk, M.D., current president and chief executive
officer of Verscend, will retain these titles for the combined
business. The combined private company plans to operate under the
Cotiviti name.
Cotiviti will operate as a healthcare information technology
company able to apply multidimensional analytic insights, deep
market expertise, and high-performance services to help its clients
reshape the economics of healthcare. The new Cotiviti sits at the
intersection of payers’ most critical programs that affect
financial performance: payment accuracy; fraud, waste, and abuse
management; risk adjustment; quality improvement and reimbursement;
population health management; and high-value network performance.
By combining some of the most robust financial and clinical data in
the industry, Cotiviti will have unique insight into the healthcare
system. The company’s combined intellectual capital, data assets,
client base, and subject-matter expertise extend its leadership in
healthcare’s rapidly changing landscape.
“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,” said Dr. Rizk. “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 of Cotiviti is the latest by Veritas Capital,
which also recently acquired GE Healthcare’s Value-Based Care
Division and has made previous investments in Truven Health
Analytics as well as Verscend. According to chief executive officer
and managing partner Ramzi Musallam, the Verscend-Cotiviti
combination is a strong fit for its investment strategy.
“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,” Musallam said. “We expect that the two
companies’ complementary data sets, analytical capabilities, and
industry expertise will accelerate forward momentum for the new
Cotiviti through smarter, faster solutions that address rising
costs, eliminate waste, and speed quality improvement for the
healthcare industry overall.”
Under the terms of the agreement, Cotiviti shareholders will
receive merger consideration in the amount of $44.75 in cash for
each share of Cotiviti common stock they hold (without interest and
subject to any applicable withholding taxes or other amounts
required to be withheld therefrom under applicable law). American
Stock Transfer & Trust Company has been appointed as paying
agent in connection with the merger and will be mailing a letter of
transmittal to all Cotiviti shareholders of record within two
business days. The letter of transmittal will instruct shareholders
on how to surrender their shares of Cotiviti common stock in
exchange for the merger consideration.
The transaction was announced on June 19, 2018, and received
approval from Cotitivi shareholders on August 24, 2018. As a result
of the completion of the transaction, shares of Cotiviti common
stock were removed from listing on the New York Stock Exchange
(“NYSE”), with trading in Cotiviti shares suspended prior to the
opening of business today.
About Cotiviti
Following the Verscend-Cotiviti combination, Cotiviti will be a
leading information technology and analytics company that is
reshaping the economics of healthcare, helping its clients uncover
new opportunities to unlock value. Cotiviti’s solutions are a
critical foundation for healthcare payers in their mission to lower
healthcare costs and improve quality through higher-performing
payment accuracy, quality improvement, risk adjustment, and network
performance management programs. The company also supports retail
and life/legal industries with data management and audit services
that improve business outcomes. For more information, visit
www.cotiviti.com.
About Veritas Capital
Veritas is a leading private equity firm that invests in
companies that provide critical products and services, primarily
technology and technology-enabled solutions, to government and
commercial customers worldwide, including those operating in the
aerospace & defense, healthcare, technology, national security,
communications, energy, and education industries. Veritas seeks to
create value by strategically transforming the companies in which
it invests through organic and inorganic means. For more
information on Veritas Capital and its current and past
investments, visit www.veritascapital.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180827005317/en/
CotivitiSandy Cummings,
781-472-0145Sandy.Cummings@Verscend.comorVeritas CapitalSard
Verbinnen & CoAndrew Cole/David Millar/Julie
Rudnick212-687-8080VeritasCapital-SVC@sardverb.com
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