Cotiviti Announces Agreement to Acquire Edifecs

Combined company to enhance interoperability, connectivity and outcomes across the healthcare system

Cotiviti Announces Agreement to Acquire Edifecs

Media:
Ross Homer
Aria Marketing for Cotiviti
rhomer@ariamarketing.com
508-344-8051

Janet Hohmann
Director PR and Corporate Communications
janet.hohmann@edifecs.com
415-240-6904

Cotiviti, a leader in data-driven healthcare solutions, has entered into an agreement to acquire Edifecs, a pioneer in healthcare data interoperability. The combined platform will enhance connectivity between payers and providers, enable increased collaboration in the delivery of care, and accelerate deployment of value-added solutions in the healthcare system.

Operating under the Cotiviti brand, clients of the combined organization 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.

"Cotiviti and Edifecs share a common goal of fostering a high-quality and viable healthcare system,” said Dr. Rizk. “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.”

"Edifecs’ interoperable cloud solutions support connectivity and collaboration across payers and providers to unlock value and enable more effective member care,” said Venkat Kavarthapu, Chief Executive Officer of Edifecs. “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.”

"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," said Hunter Craig, Managing Director at KKR. "We are committed to supporting this growth and believe this transaction will help Cotiviti continue to drive positive change across the healthcare value chain.”

“Veritas is extremely pleased to support Cotiviti in its acquisition of Edifecs,” said Ramzi Musallam, CEO and Managing Partner of Veritas. “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.”

“TA has been proud to partner with Edifecs since 2020, delivering meaningful growth in support of its mission to improve healthcare interoperability,” said Ashu Agrawal, Managing Director at TA. “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.”

“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,” said Ezra Perlman, Co-President of Francisco Partners. “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.”

The transaction is subject to customary regulatory approvals prior to closing. Goldman Sachs & Co. LLC and TripleTree served as financial advisors and Gibson Dunn provided legal counsel to Cotiviti. J.P. Morgan Securities LLC and William Blair & Company, LLC served as financial advisors and Kirkland & Ellis LLP provided legal counsel to Edifecs.

About Cotiviti:

Cotiviti enables healthcare organizations to deliver better care at lower cost through advanced technology and data analytics, helping to ensure the quality and sustainability of how healthcare is delivered in the United States. Cotiviti’s solutions are a critical foundation for healthcare payers in their mission to lower healthcare costs and improve quality through higher performing payment accuracy, quality improvement, risk adjustment, and consumer engagement programs. The company also supports the retail industry with data management and recovery audit services that improve business outcomes. For more information, visit www.cotiviti.com.

About Edifecs:

Edifecs provides market-leading technology to its payer and health system customers, which serve nearly 300 million people in the U.S. healthcare market. For over 25 years, Edifecs has enabled customers to unlock greater value with their healthcare operations solutions and data management platform, which includes its market leading healthcare interoperability cloud solution. Edifecs healthcare SaaS solutions, available on both public, private, and hybrid clouds, serve as the foundation that eliminates stakeholder friction to overcome healthcare’s biggest challenges, including accelerating value-based care adoption and obtaining more complete and accurate care funding. For more information, visit www.edifecs.com.