(Reuters) – The private equity arm of Goldman Sachs Group Inc and Oak Investment Partners are in talks to sell iHealth Technologies Inc in a deal that could value the medical claims company at more than $1 billion, people familiar with the matter said.
The two investment firms are in discussions with a small number of private equity firms about selling iHealth, which helps insurance companies process medical claims, the people said on Wednesday.
Goldman Sachs’ investment banking unit and boutique financial advisory firm TripleTree LLC are advising on the potential sale, two of the people said.
All the people asked not to be identified because the matter is not public. Representatives of Goldman Sachs, Oak Investment Partners, iHealth and TripleTree did not immediately respond to requests for comment.
Founded in 2001, Atlanta, Georgia-based iHealth provides analytics and services to contain medical and administration costs for more than 75 healthcare organizations, including insurance plans, according to its website. It was taken over by Goldman Sachs in 2006 for an undisclosed sum.
The insurance claims services sector in the United States has seen robust private equity deal activity in the last few years as the industry’s outlook improves amid a modest economic recovery.
Last month, Starr Investment Holdings LLC, led by former AIG (AIG.N: Quote, Profile, Research, Stock Buzz) boss Maurice “Hank” Greenberg’, struck a $4.4 billion deal to buy health insurance claims processor MultiPlan Inc from private equity firms BC Partners Ltd and Silver Lake.
This followed KKR & Co LP’s (KKR.N: Quote, Profile, Research, Stock Buzz) $2.4 billion takeover of Sedgwick Claims Management Services Inc and $1.1 billion acquisition of Mitchell International Inc, and Apax Partners LLP’s roughly $3 billion acquisition of One Call Care Management Inc and Align Networks Inc.Get your FREE trial or subscribe now to Buyouts to find new deal opportunities, super-charge your fundraising efforts and track top managers.