Market Overview

Verscend Technologies, Inc., Completes Acquisition of Cotiviti Holdings, Inc.

Share:

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.

View Comments and Join the Discussion!