KKR to acquire a stake in health tech firm Cotiviti

By Thomson Reuters Feb 14, 2024 | 9:17 AM

(Reuters) -Private equity firm KKR & Co has agreed to acquire a stake in Cotiviti from investment manager Veritas Capital, the healthcare technology firm said on Wednesday.

KKR and Veritas will have equal ownership stakes in Cotiviti following the deal’s closure, expected in the second quarter of 2024.

KKR and Cotiviti declined to provide any financial details about the transaction, which strengthens KKR’s portfolio of healthcare analytics investments.

KKR was a leading contender to buy a 50% stake in Cotiviti and a deal would value the company between $10 billion and $11 billion, sources familiar with the matter had told Reuters earlier on Wednesday.

KKR was in talks with a syndicate of banks and a group of private creditors to finance the transaction, according to Reuters sources.

South Jordan, Utah-based Cotiviti provides payment accuracy and analytics services to health insurers and other healthcare companies.

(Reporting by Bhanvi Satija and Niket Nishant in Bengaluru; Editing by Shilpi Majumdar)