Private equity firm Veritas Capital added another health IT company to its growing portfolio on Monday as Verscend Technologies completed its $4.9 billion purchase of Cotiviti.
Cotiviti, an analytics company that focuses on payment accuracy solutions, was absorbed by Veritas-owned Verscend Technology with a similar focus.
The combined company will operate under the Cotiviti name with Verscend’s current CEO and President Emad Rizk, M.D., retaining his position in the new company. The completed the transaction also takes Cotiviti from a public company to privately held.
“Both companies are customer-driven innovators that share a similar mission: to help our clients improve healthcare affordability, reduce waste, and identify the best path to better outcomes,” Rizk said in a statement.
The transaction comes just a few months after Veritas bought GE Healthcare’s suite of health IT tools, including its revenue cycle management business. That $1 billion acquisition is expected to close this quarter.
Veritas CEO Ramzi Musallam said the deal exemplifies the firm’s investment strategy focused on established companies that can bring “much needed precision and insight.”
“We expect that the two companies’ complementary data sets, analytical capabilities, and industry expertise will accelerate forward momentum for the new Cotiviti through smarter, faster solutions that address rising costs, eliminate waste, and speed quality improvement for the healthcare industry overall,” he said.
Veritas has previously dabbled in payment integrity analytics, buying Truven Health Analytics from Thomson Reuters for $1.25 billion in 2012 and then selling the company to IBM Watson for $2.6 billion in 2016.