KKR plans to acquire a stake in healthcare data analytics company Cotiviti from private equity company Veritas Capital, the companies said Wednesday.
Both the private equity firm and Veritas would have equal ownership stakes in Cotiviti as part of the transaction, which values Cotiviti at around $10.5 billion, according to a source familiar with the deal.
Read more: AI does what insurers ask. Providers say that’s the problem.
In June 2018, Veritas acquired and took Cotiviti private in a $4.9 billion deal. The data analytics company had been a publicly traded company since May 2016.
KKR, Veritas and Cotiviti declined to comment beyond a news release.
Cotiviti’s artificial intelligence-enabled platform helps health insurers identify improper payments. It also helps payers and provider organizations in risk adjustment programs. KKR and Veritas said they would allocate significant capital to growing Cotiviti’s commercial business and developing new products.
KKR said it would make its investment in Cotiviti through its North America Fund XIII. Veritas said it would make its new investment in Cotiviti through Veritas Fund VIII. The deal is expected to close in the second quarter, pending regulatory approvals.
It's been a busy year for KKR in healthcare. KKR-backed Brightspring Health Services, a home health provider, announced plans to go public in January and said it plans to raise $960 million.
