Centauri Health Solutions, which helps payers and hospitals in government-sponsored healthcare programs optimize reimbursement and revenue management, is seeking a sponsor recapitalization, according to four sources.
William Blair has been engaged to advise the Scottsdale, Arizona, company.
Initial marketing materials were recently distributed, with the company marketing estimated 2019 Ebitda of close to $25 million on revenue just north of $100 million, the sources said.
The process remains in its early stages, with sources predicting a wide range of valuation possibilities.
One of the people suggested an investment in the company ought to value Centauri at an Ebitda multiple of 15x at most, or some $360 million, while two other sources speculated a valuation range spanning from the high-$300 million to as much as $450 million.
Centauri was founded in 2014 by CEO Adam Miller, who most recently served as Executive VP of Medicare at CVS Caremark. The executive previously held various leadership roles at companies including WellCare Health Plans, UnitedHealth Group and GE Medical.
Centauri provides healthcare technology and analytics-enabled services to help customers navigate government-sponsored healthcare programs, offering eligibility, risk adjustment, enrollment and billing services.
The company serves payers including Medicare, Medicaid and commercial health plans as well as health systems and hospitals.
Centauri has raised a total of $118.4 million in funding over three rounds, according to Crunchbase. Investors in included SV Health Investors and Silversmith Capital Partners.
Other providers of similar services include Optum, UnitedHealth’s technology-focused unit.
In related industry activity, TPG Capital recently bought Convey Health Solutions from New Mountain Capital in a deal that sources said valued the company at around $750 million, or about 15x its about $50 million in projected 2019 Ebitda.
Convey manages everything from eligibility and enrollment processing to premium billing and payment processing, simplifying processes for Medicare Part D and Medicare Advantage programs.
Elsewhere in healthcare technology, Bain Capital in July invested in Parthenon Capital’s merger of two portfolio companies, Zelis Healthcare and Redcard, in a transaction valuing the new company at approximately $5.7 billion.
Other notable transactions this year include New Mountain’s sale of Equian to UnitedHealth Group in an approximately $3.2 billion deal, as well as Bain’s $2.7 billion sale of healthcare revenue cycle management company Waystar to EQT and Canada Pension Plan Investment Board.
William Blair declined to comment, while Centauri’s Miller couldn’t immediately be reached on Wednesday.
Action Item: Reach Centauri’s global headquarters at 888-447-8908