Cotiviti, a leader in data-driven healthcare solutions, announced it has agreed to acquire Edifecs, a pioneer in healthcare data interoperability. This combined platform will enhance connectivity between payers and providers, enable increased collaboration in care delivery, and accelerate the deployment of value-added solutions in the healthcare system.
Operating under the Cotiviti brand, the combined organization’s clients can accelerate key business objectives while achieving meaningful improvements in efficiency and quality of care. Emad Rizk, M.D., Chairman, President, and CEO of Cotiviti, will lead the combined company in the same capacity.
The deal is subject to customary regulatory approvals before closing. Goldman Sachs and TripleTree served as financial advisors and Gibson Dunn provided legal counsel to Cotiviti. And J.P. Morgan Securities and William Blair & Company served as financial advisors and Kirkland & Ellis LLP provided legal counsel to Edifecs.
KEY QUOTES:
“Cotiviti and Edifecs share a common goal of fostering a high-quality and viable healthcare system. This acquisition will provide enhanced value to our clients by combining our talented teams and advanced technology to increase focus on interoperability, enable value-based care, and streamline health plan operations, all to better both patient outcomes and the sustainability of healthcare.”
- Dr. Rizk
“Edifecs’ interoperable cloud solutions support connectivity and collaboration across payers and providers to unlock value and enable more effective member care. Efficient data and information access and exchange is essential to improving transparency and reducing administrative waste. We look forward to accelerating our ability to enhance our solutions by coming together with Cotiviti’s high-performing solutions.”
- Venkat Kavarthapu, Chief Executive Officer of Edifecs
“Last year, Veritas Capital and KKR became co-sponsors and completed a recapitalization of Cotiviti. Since then, Cotiviti has made significant investments and advancements in their solutions, improving both efficiency and quality of care. We are committed to supporting this growth and believe this transaction will help Cotiviti continue to drive positive change across the healthcare value chain.”
- Hunter Craig, Managing Director at KKR
“Veritas is extremely pleased to support Cotiviti in its acquisition of Edifecs. This strategic move underscores our commitment to Cotiviti and driving innovation in the healthcare sector. By leveraging both Cotiviti and Edifecs’ innovative technology and comprehensive solutions, they are poised to deliver new benchmarks in healthcare efficiency and quality.”
- Ramzi Musallam, CEO and Managing Partner of Veritas
“TA has been proud to partner with Edifecs since 2020, delivering meaningful growth in support of its mission to improve healthcare interoperability. Cotiviti and Edifecs share a commitment to driving positive change in the healthcare sector, and bring together the leadership and complementary solutions needed to accelerate innovation, enhance efficiency, and improve outcomes for all stakeholders. We look forward to seeing Edifecs’ next chapter of innovation as part of Cotiviti.”
- Ashu Agrawal, Managing Director at TA
“We are pleased to have supported Edifecs’ growth since our initial investment in 2020. Partnering with founder-led businesses to help them realize their vision is what we love to do, and this is a great example of that. Working with our co-investors at TA has been outstanding. We commend Edifecs’ talented management team for being excellent stewards of our capital, helping to expand the product portfolio, grow the Edifecs business in a remarkable way, and generate a strong return for our limited partners.”
- Ezra Perlman, Co-President of Francisco Partners
