Cotiviti announced that it has entered into a definitive agreement to recapitalize the business with affiliates of its long-standing partner Veritas Capital and investment funds managed by KKR.
Cotiviti is a healthcare analytics company based in Wilton, Connecticut. The company also supports the retail industry with data management and recovery audit services that improve business outcomes.
Veritas Capital is a private equity firm which invests in companies that provide critical products and services, primarily technology and technology-enabled solutions to the aerospace and defense, healthcare, technology, communications, energy and education industries.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR has a long track record of supporting health care companies globally, having invested approximately $17 billion in the sector since 2004.
Under the agreement, KKR and Veritas will become co-sponsors with equal ownership stakes in Cotiviti. The firms will also allocate significant capital to accelerate innovation and fund growth investments related to commercial expansion, new product development and technology-related opportunities. KKR is making its investment in Cotiviti primarily through its North America Fund XIII. Veritas is investing through its Veritas Fund VIII. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions, including regulatory approvals. Financial terms of the deal were not disclosed.
According to data captured in the LevinPro HC database, this transaction represents the 41st eHealth acquisition of 2024, and the fifth in the analytics specialty. During 2023, there were 273 eHealth and 35 analytics transactions announced.
