Private equity-backed Ciox Health has been sold in a $7 billion deal. The buyer was Datavant, a San Francisco-based digital health company that helps healthcare organizations safely link their data to improve medical research and patient care. It is backed by Roivant Sciences, SoftBank Vision Fund and Founders Fund.
Ciox Health manages a platform that leverages clinical data to improve patient outcomes and lower healthcare costs. The company simply and securely connects healthcare decision-makers with the data and hidden insights in patient medical records. It was a portfolio company of New Mountain Capital.
The combined company’s ecosystem of data and analytics will now include information from more than 2,000 hospitals, 15,000 clinics, 120 health plans and 70 academic institutions and not-for-profits. The transaction is supported by an existing investor group of private equity, venture capital and investors led by New Mountain Capital, Roivant Sciences, Transformation Capital, Merck Global Health Innovation Fund, Labcorp, Cigna Ventures, Johnson & Johnson Innovation – JJDC, Inc., and Flex Capital.
It also includes a significant new investment by Sixth Street with participation from Goldman Sachs Asset Management’s West Street Strategic Solutions fund. Sixth Street will join the new company’s Board of Directors at the completion of the transaction.
Deutsche Bank, Goldman Sachs and Triple Tree served as the financial advisors to New Mountain and Ciox. Ropes & Gray LLP served as legal advisor to New Mountain and Ciox; Goodwin Procter LLP served as legal advisor to Datavant. Sidley Austin LLP served as legal advisor to Sixth Street and Goldman Sachs.
