Cotiviti to Acquire Edifecs in Strategic Deal
Cotiviti, a leader in data-driven healthcare solutions, has announced an agreement to acquire Edifecs, a trailblazer in healthcare data interoperability. This strategic acquisition aims to create a combined platform that will strengthen connectivity between payers and providers, foster greater collaboration in patient care, and expedite the deployment of advanced solutions within the healthcare system.
Cotiviti, a leader in data-driven healthcare solutions, has announced its agreement to acquire Edifecs, a pioneer in healthcare data interoperability. The combined company, operating under the Cotiviti brand, will enhance connectivity between healthcare payers and providers, enabling better collaboration and more efficient care delivery. This move is set to significantly improve the healthcare system’s ability to deploy advanced solutions, reduce costs, and increase the quality of care for patients.
Dr. Emad Rizk, the Chairman, President, and CEO of Cotiviti, will continue to lead the newly expanded organization in the same capacity. “Cotiviti and Edifecs share a common goal of fostering a high-quality and sustainable healthcare system,” said Dr. Rizk. “This acquisition will enable us to provide even more value to our clients by combining our advanced technology, talented teams, and focus on interoperability to improve patient outcomes and streamline health plan operations.”
Edifecs is known for its interoperable cloud solutions that support connectivity between payers and providers. The company’s platform helps reduce administrative waste and enhances transparency by improving data access and exchange, which is essential for more effective member care. Venkat Kavarthapu, CEO of Edifecs, expressed his excitement about the partnership, saying, “We look forward to accelerating the capabilities of our solutions by joining forces with Cotiviti, whose high-performing solutions complement our vision for advancing healthcare interoperability.”
This acquisition follows Cotiviti’s recapitalization last year, with Veritas Capital and KKR becoming co-sponsors. This recapitalization enabled Cotiviti to invest in and expand its capabilities to improve efficiency and quality of care. Hunter Craig, Managing Director at KKR, expressed confidence in the acquisition, saying, “We are committed to supporting Cotiviti’s continued growth, and we believe this acquisition will help drive positive change across the healthcare value chain.”
Ramzi Musallam, CEO and Managing Partner of Veritas, also voiced his support for the acquisition, stating, “This strategic move reinforces our commitment to innovation in the healthcare sector. By combining the technologies and solutions of Cotiviti and Edifecs, they are well-positioned to deliver new benchmarks in healthcare efficiency and quality.”
TA Associates, which has partnered with Edifecs since 2020, also expressed pride in the acquisition. Ashu Agrawal, Managing Director at TA, said, “This acquisition brings together the leadership and complementary solutions needed to accelerate innovation, enhance efficiency, and improve healthcare outcomes. We look forward to seeing Edifecs continue to innovate as part of Cotiviti.”
Ezra Perlman, Co-President of Francisco Partners, which also supported Edifecs’ growth since 2020, praised the deal, saying, “This partnership exemplifies our strategy of working with founder-led businesses to help them realize their vision. We are proud of Edifecs’ remarkable growth and the way its leadership has expanded its product portfolio, and we are excited to see the next chapter of innovation for Edifecs as part of Cotiviti.”
The acquisition is subject to customary regulatory approvals before closing. Financial advisors for Cotiviti include Goldman Sachs & Co. LLC and TripleTree, with legal counsel provided by Gibson Dunn. J.P. Morgan Securities LLC and William Blair & Company, LLC served as financial advisors for Edifecs, with Kirkland & Ellis LLP providing legal counsel.
About Cotiviti
Cotiviti helps healthcare organizations deliver high-quality care at lower costs through advanced technology and data analytics. Its solutions are critical to healthcare payers in achieving goals such as improving payment accuracy, quality improvement, risk adjustment, and consumer engagement. The company also works with the retail industry, providing data management and recovery audit services that improve business outcomes. Cotiviti’s commitment to enhancing the quality and sustainability of healthcare makes it a leader in the field.
With this acquisition of Edifecs, it will further its mission to improve the healthcare system by enhancing interoperability, streamlining operations, and facilitating value-based care. Together, the two companies aim to reshape healthcare delivery, bringing meaningful changes to patient care and the overall efficiency of the healthcare ecosystem.
