Private equity giant KKR & Co has entered into an agreement to acquire a stake in healthcare technology firm Cotiviti from investment manager Veritas Capital. The deal, expected to close in Q2 2024, will result in KKR and Veritas holding equal ownership stakes in Cotiviti. The financial terms of the transaction were not disclosed.
Reuters reported earlier that KKR was a frontrunner to acquire a 50% stake in Cotiviti, valuing the company between $10 billion and $11 billion. KKR has enlisted a syndicate of banks to finance the deal, with JPMorgan leading a group providing $5 billion in loans for the transaction.
While KKR declined to comment on financing details, the move marks a notable win for traditional banks in the competitive buyout financing market. Typically, private firms, enjoying regulatory flexibility, have become a preferred source of capital as banks tightened lending standards due to elevated interest rates.
Cotiviti, based in South Jordan, Utah, specializes in payment accuracy and analytics services for health insurers and other healthcare entities. Veritas Capital had taken Cotiviti private in 2018.
The acquisition will further enhance KKR's healthcare portfolio, which already includes investments in healthcare analytics firms such as Clarify Health Solutions, Headlands Research, and Resolian Bioanalytics.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or endorsement. Always conduct thorough research and consult with financial professionals before making investment decisions.