Cotiviti Advances with Edifecs Acquisition in Healthcare Data
Deal News | Feb 10, 2025 | TA Associates
Cotiviti, a prominent player in data-driven healthcare solutions, has announced a strategic acquisition of Edifecs, known for its healthcare data interoperability expertise. The integration of these two companies aims to enhance connectivity between payers and providers, thereby fostering collaboration and expediting the deployment of value-added solutions within the healthcare system. This collaboration is expected to improve efficiency and quality of care for clients under the Cotiviti brand. Dr. Emad Rizk will continue to lead the combined entity. Veritas Capital and KKR, co-sponsors of Cotiviti, have expressed their support for the acquisition as a move that symbolizes innovation and progress within the healthcare sector. Meanwhile, TA Associates commends its partnership with Edifecs, which began in 2020, for its substantial growth. The deal awaits customary regulatory approvals, with leading financial and legal advisors involved to facilitate the transaction.
Sectors
- Healthcare
- Data and Technology
Geography
- United States – The primary operations and headquarters of Cotiviti, Edifecs, and the private equity firms mentioned are likely based in the United States, relevant to the regulatory implications of the deal.
Industry
- Healthcare – The industry focuses on the provision of medical services, manufacturing of medical equipment or drugs, and the facilitation of healthcare systems. The article involves healthcare companies seeking to enhance data solutions and interoperability.
- Data and Technology – This sector deals with data management, cloud solutions, and technological innovation. The article highlights companies using advanced data solutions to improve healthcare outcomes, emphasizing interoperability.
Financials
- Not disclosed – The financial terms of the Cotiviti acquisition of Edifecs have not been disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cotiviti | Acquiring Company | Company | A leader in data-driven healthcare solutions, operating under private equity sponsorship from Veritas Capital and KKR. |
| Edifecs | Target Company | Company | Pioneer in healthcare data interoperability, now being acquired by Cotiviti. |
| TA Associates | Investor | Company | A private equity firm that previously invested in Edifecs. |
| Veritas Capital | Co-Sponsor of Cotiviti | Company | Investment firm focused on technology and government. Co-sponsor of Cotiviti alongside KKR. |
| KKR | Co-Sponsor of Cotiviti | Company | A global investment firm and co-sponsor involved in Cotiviti's recapitalization. |
| Francisco Partners | Investor | Company | A private equity firm that collaborated with TA Associates to invest in Edifecs. |
| Goldman Sachs & Co. LLC | Financial Advisor to Cotiviti | Company | Provided financial advisory services to Cotiviti for the transaction. |
| TripleTree | Financial Advisor to Cotiviti | Company | Served as a financial advisor to Cotiviti in the transaction. |
| Gibson Dunn | Legal Advisor to Cotiviti | Company | Provided legal counsel to Cotiviti for the acquisition. |
| J.P. Morgan Securities LLC | Financial Advisor to Edifecs | Company | Served as a financial advisor to Edifecs for the transaction. |
| William Blair & Company, LLC | Financial Advisor to Edifecs | Company | Provided financial advisory services to Edifecs. |
| Kirkland & Ellis LLP | Legal Advisor to Edifecs | Company | Provided legal counsel to Edifecs for the transaction. |
| Emad Rizk, M.D. | Chairman, President, and CEO | Person | Dr. Emad Rizk leads Cotiviti and will continue to do so after the merger. |