US-based healthcare technology company Cotiviti has signed a definitive agreement for its recapitalisation with affiliates of Veritas Capital and investment funds managed by KKR.
Veritas Capital, Cotiviti’s long-standing partner, and KKR will now be co-sponsors and have equal ownership stakes in the health technology business.
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The deal is due to be finalised in the second quarter of this year subject to receiving regulatory approvals.
Veritas Capital and KKR will each make an investment to fuel Cotiviti’s commercial expansion, innovation, technology opportunities and new product development.
KKR will make its investment primarily through its North America Fund XIII, while Veritas will use its Veritas Fund VIII for its investment.
Veritas CEO and managing partner Ramzi Musallam said: “Over the course of our investment, Veritas partnered with Cotiviti to drive a period of sustained transformative growth both organically and through strategic acquisitions, building a mission critical suite of solutions that have helped to reshape the economics of healthcare.
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By GlobalData“Both KKR and Veritas believe the company will play an increasingly vital role in improving the healthcare system through proprietary data, technology, and analytics.”
Based in Utah, Cotiviti aims to help healthcare organisations deliver better care at a reduced cost.
The company’s technology and data analytics are designed to reduce costs and enhance quality via payment accuracy, quality improvement, risk adjustment and consumer engagement programmes.
KKR partner Max Lin said: “Cotiviti has developed an innovative portfolio of best-in-class solutions used by nearly 200 healthcare payers to ensure accurate and efficient healthcare delivery.
“We look forward to working together with the Cotiviti management team and Veritas to support the company in accelerating growth through continued investment in its people and technology.”
Based in New York, KKR provides alternative asset management, capital markets and insurance solutions.
The company sponsors investment funds that invest in private equity, credit and real assets.
