Cotiviti Acquires Edifecs to Boost Healthcare Interoperability
Deal News | Feb 10, 2025 | Francisco Partners Management LLC
Cotiviti, a prominent provider of data-driven healthcare solutions, has announced a strategic acquisition of Edifecs, a pioneer in healthcare data interoperability. The merger is structured to enhance interoperability and connectivity across the healthcare system in North America, thus improving outcomes and efficiencies in health plan operations. Cotiviti's acquisition follows significant investments and advancements post its recapitalization by co-sponsors Veritas Capital and KKR last year. The transaction, set to operate under the Cotiviti brand, emphasizes increased collaboration in the delivery of care and accelerating deployment of value-added solutions. Esteemed financial advisors Goldman Sachs and TripleTree, alongside legal counsel Gibson Dunn, facilitated the transaction for Cotiviti, while J.P. Morgan Securities and William Blair & Company supported Edifecs. The transaction requires customary regulatory approvals and highlights the coming together of two leaders to drive innovation in healthcare data management and technology solutions.
Sectors
- Healthcare Technology
- Private Equity
Geography
- North America – The primary geographical focus of the transaction, as both Cotiviti and Edifecs have significant operations in the U.S. healthcare market.
Industry
- Healthcare Technology – The primary industry involved given Cotiviti and Edifecs' focus on data-driven healthcare solutions and interoperability.
- Private Equity – Francisco Partners, Veritas Capital, and KKR are key financial investors in the transaction.
Financials
- Not Disclosed – The financial terms of the acquisition were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cotiviti | Acquirer | Company | A leader in data-driven healthcare solutions, aiming to enhance connectivity and efficiency in health plan operations. |
| Edifecs | Target | Company | A pioneer in healthcare data interoperability, offering market-leading technology solutions. |
| Francisco Partners | Seller | PE | Previous investor in Edifecs, focusing on technology investments. |
| Veritas Capital | Co-sponsor | PE | Co-sponsor of Cotiviti's prior recapitalization, continues to support its growth. |
| KKR | Co-sponsor | PE | Co-sponsor of Cotiviti's prior recapitalization, supporting strategic growth initiatives like the Edifecs acquisition. |
| TA Associates | Former Investor | PE | Former investor in Edifecs, contributed to its growth since 2020. |
| Goldman Sachs & Co. LLC | Financial Advisor | Company | Served as financial advisor to Cotiviti. |
| TripleTree | Financial Advisor | Company | Served as financial advisor to Cotiviti. |
| Gibson Dunn | Legal Counsel | Company | Provided legal counsel to Cotiviti. |
| J.P. Morgan Securities LLC | Financial Advisor | Company | Served as financial advisor to Edifecs. |
| William Blair & Company, LLC | Financial Advisor | Company | Served as financial advisor to Edifecs. |
| Kirkland & Ellis LLP | Legal Counsel | Company | Provided legal counsel to Edifecs. |