Verscend Technologies acquires Cotiviti Holdings in $4.9bn deal

Cotiviti Holdings, a payment accuracy and analytics solution, has been acquired by data-driven healthcare solution developer Verscend Technologies in a deal worth $4.9bn in cash.

The deal will see Cotiviti shareholders receive $44.75 in cash per share of common stock. As part of the deal, Verscend will assume all of Cotiviti’s outstanding debt, which brings the enterprise value to around $4.9bn.

This offer is a 32 per cent premium on Cotiviti’s share price as of June 4, and is a 136 per cent increase to the initial public offering value.

Together, the companies will operate as a private healthcare information technology provider, offering clients increase affordability, lower waste and better outcomes and quality. Alongside this, it will offer new solutions to create new value including intervention points in the payment process.

Cotiviti offers healthcare providers and retailers with a payment accuracy and analytics solution. Its platform builds insights to help companies optimise claim processing and increase containment on facility claims. Its services also help with fraud detection, protecting pre- and post-payment protection against adherent billing and fraud schemes.

Verscend delivers data analytics for healthcare organisations to help support their financial performance and quality improvement initiatives. Its payment accuracy, risk adjustment and quality and performance solutions helps enterprises use data to improve efficiency and become more cost efficient.

Verscend president and CEO Emad Rizk said. “Together, Verscend and Cotiviti will offer our clients a comprehensive, integrated end-to-end solution to address the estimated $900 billion in healthcare waste and abuse across the claims payment and care continuum.

“Financial data coupled with clinical data from our Risk Adjustment, Quality, and Population Health lines of business offer increased value to commercial payers, government entities, and providers.”

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