Private equity firm Veritas Capital will buy Cotiviti Holdings Inc (COTV.N) in a deal valued at $4.9 billion, the U.S. healthcare analytics company said on Tuesday.
Cotiviti shareholders will receive $44.75 per share in cash, representing a premium of 12.2 percent to the stock’s closing price on Monday. Veritas will assume Cotiviti’s outstanding debt.
Atlanta-based Cotiviti, which provides payment accuracy and analytics services to health insurers and other healthcare companies, will combine with Veritas-controlled Verscend Technologies Inc.
Cotiviti shares jumped 10.3 percent to $44 in premarket trading.
Cotiviti shareholder Advent International – whose shares represent some 44 percent of the healthcare analytics firm’s voting power – will vote in favor of the deal.
Goldman Sachs and William Blair were Cotiviti’s financial advisers. Latham & Watkins LLP provided legal counsel.
Skadden, Arps, Slate, Meagher & Flom LLP was Veritas’ legal adviser.