Verscend acquires Cotiviti for $4.9bn
Launching its initial public offering in 2016, Cotiviti Holdings, a provider of payment accuracy and analytics-driven solutions focused on serving major US healthcare payers and retailers, is now set to be acquired by Verscend Technologies, Inc for $4.9bn in an all-cash transaction.
A portfolio company of Veritas Capital and a leader in data-driven healthcare solutions, Verscend will also assume all of Cotiviti’s outstanding debt, whilst Cotiviti shareholders will receive $44.75 in cash per share of Cotiviti common stock.
The $4.9bn deal represents a 32% premium to Cotiviti’s unaffected share price and a 136% premium to the initial public offering price.
The combined business will operate as a private healthcare information technology company with unique, data-driven capabilities. Together, the duo is expected to have greater impact in the healthcare IT market by increasing affordability, reducing waste and improving outcomes and quality as well as offer new opportunities to create substantial value for clients. This includes complementary solutions across multiple intervention points in the payment process.
“We are thrilled to partner with Cotiviti, which has become an important player in the growing and increasingly important and complex healthcare payment accuracy space,” said Emad Rizk, M.D., President and CEO of Verscend.
“Together, Verscend and Cotiviti will offer our clients a comprehensive, integrated end-to-end solution to address the estimated $900bn in healthcare waste and abuse across the claims payment and care continuum.
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“Financial data coupled with clinical data from our Risk Adjustment, Quality, and Population Health lines of business offer increased value to commercial payers, government entities, and providers.”
Doug Williams, CEO of Cotiviti said: “We expect today’s transaction to deliver compelling value for Cotiviti shareholders and allow us to continue to execute our strategic growth plan.
“We are excited to be combining with Verscend and believe that together we will create an organisation with robust data assets, expanded offerings and innovative technologies that will allow us to bring a broader portfolio of new and existing payment accuracy analytical solutions to our valued customers.”
“We believe Cotiviti is a perfect fit with both our investment strategy and with Verscend, and we look forward to taking the platform to the next level,” added Ramzi Musallam, CEO and Managing Partner of Veritas Capital.
“The aggregation of Cotiviti and Verscend’s complementary data sets and analytical capabilities, coupled with the unrelenting focus and commitment to support our customers, is expected to further drive value-added solutions and differentiated product development.”
Veritas Capital has a proven track record of driving growth for companies within the Healthcare Technology IT space. The company has a deep understanding of the urgent need to digitalise the healthcare system and brings a culture of intense customer focus and a drive for growth through focused R&D and product innovation.
NHS opens 8 clinical trial sites to assess cancer treatment
The UK's National Health Service (NHS) is opening eight clinical trial sites to assess patients' responses to personalised cancer therapy.
The trials will analyse how patients diagnosed with advanced melanoma or non-small cell lung cancer respond to immunotherapy, to help predict their response to treatment. They will be hosted at Gloucestershire Hospitals NHS Foundation Trust facilities.
Immunotherapy helps the body's own immune system fight cancer, but while it has achieved good results for some cancer patients, it is not successful for everyone. Finding ways to predict which people will respond to the treatment is a major area of research.
OncoHost, an oncology startup, will provide advanced machine learning technology to develop personalised strategies aiming to improve the success rate of the cancer therapy. The trials will contribute to OncoHost’s ongoing PROPHETIC study, which uses the company’s host response profiling platform, PROphet®.
“Immunotherapy has achieved excellent results in certain situations for several cancers, allowing patients to achieve longer control of their cancer with maintained quality of life and longer survival,” said Dr David Farrugia, Consultant Medical Oncologist at NHS, and chief investigator of all eight NHS clinical trial sites.
“However, success with immunotherapy is not guaranteed in every patient, so this PROPHETIC study is seeking to identify changes in proteins circulating in the blood which may help doctors to choose the best treatment for each patient."
"I am excited that Gloucestershire Oncology Centre and its research department have this opportunity to contribute to this growing field of research and I am determined that our centre will make a leading national contribution in patient recruitment.”
Previous studies in the US and Israel have shown that PROphet® has high accuracy in predicting how patients with cancer will respond to various therapies.