Cotiviti announces recapitalization with KKR

Cotiviti announced that the Company has entered into a definitive agreement to recapitalize the business with affiliates of its long-standing partner Veritas Capital, and investment funds managed by KKR.

Under the agreement, KKR and Veritas will become co-sponsors with equal ownership stakes in Cotiviti. The firms will also allocate significant capital to accelerate innovation and fund growth investments related to commercial expansion, new product development, and technology-related opportunities.

“I am excited to continue our partnership with Veritas and welcome KKR as a new partner,” said Emad Rizk, M.D., Chairman, President, and CEO of Cotiviti. “Since initially partnering with Veritas in 2016, we have dramatically expanded our scale and enhanced our value proposition to our customers. I look forward to collaborating with both KKR and Veritas to leverage our highly differentiated solutions to improve the cost and quality within the healthcare system.”

“Our investment philosophy is built upon finding businesses with products and services that transform how industries operate and investing behind those capabilities to make the company more valuable to its customers,” said Ramzi Musallam, CEO and Managing Partner of Veritas. “Over the course of our investment, Veritas partnered with Cotiviti to drive a period of sustained transformative growth both organically and through strategic acquisitions, building a mission critical suite of solutions that have helped to reshape the economics of healthcare. Both KKR and Veritas believe the Company will play an increasingly vital role in improving the healthcare system through proprietary data, technology, and analytics.”

“We are delighted to be backing Cotiviti in its mission to improve the healthcare experience through advanced data analytics and technology,” said Max Lin, Partner at KKR. “Cotiviti has developed an innovative portfolio of best-in-class solutions used by nearly two hundred healthcare payers to ensure accurate and efficient healthcare delivery. We look forward to working together with the Cotiviti management team and Veritas to support the Company in accelerating growth through continued investment in its people and technology.”

KKR is making its investment in Cotiviti primarily through its North America Fund XIII. Veritas is making its new investment in Cotiviti through Veritas Fund VIII. The transaction is expected to close in the second quarter of 2024, subject to customary closing conditions, including regulatory approvals.
MB Bureau