NEW YORK, July 9, 2010 BC Partners, a leading international private equity firm, and Silver Lake, the worlds largest private equity investor in technology, announced today that they have agreed to acquire MultiPlan, Inc., a transaction-based healthcare cost management company that processes more than 100 million medical claims annually.
As the nations leading comprehensive provider of healthcare cost management solutions, MultiPlan delivers transaction-based services to insurers, health plan administrators, and other payers of healthcare services, as well as to its national network of medical providers, which includes over 5,000 hospitals, 115,000 ancillary care facilities and 625,000 healthcare practitioners in the United States. Founded in 1980, MultiPlan, the largest company in its industry, recently acquired Viant, a provider of similar healthcare cost management solutions. The acquisition has created a new company characterized by a more expansive national medical network footprint and a broader set of solutions, providing greater flexibility and choice for patients, payers and providers.
The investment from BC Partners and Silver Lake is a significant milestone in our evolution as a leading transaction-based healthcare cost management company, said MultiPlan Chief Executive Officer Mark Tabak. BC Partners and Silver Lake are worldclass investors with proven healthcare and technology expertise. We will benefit from their resources and insight as we further develop innovative technology that helps healthcare payers and providers collaboratively address the high cost of healthcare.
Mark and his team have done a tremendous job to position MultiPlan to be at the forefront of the fundamental changes taking place in the U.S. healthcare industry, said BC Partners Co-Chairman Raymond Svider. Through a series of strategic initiatives and complementary acquisitions, MultiPlan today is a leader in working with all healthcare industry participants to ensure that individuals receive greater choice, increased flexibility and cost effective care. We look forward to helping the MultiPlan leadership team build on this foundation and continue to grow.
Egon Durban, Managing Director of Silver Lake, said "This investment in MultiPlan, our first in the healthcare industry, is a compelling addition to Silver Lakes portfolio of market-leading transaction processing businesses in multiple industry verticals ranging from travel to point-of-sale payments. MultiPlan is powerfully positioned for future growth as it introduces greater efficiency and access to its truly unique medical network and platform of healthcare cost management services."
BC Partners and Silver Lake are acquiring MultiPlan from The Carlyle Group and Welsh, Carson, Anderson & Stowe.
Barclays Capital, Credit Suisse, Simpson Thacher & Bartlett and PricewaterhouseCoopers are advising BC Partners and Silver Lake on this transaction. BofA Merrill Lynch, Barclays Capital and Credit Suisse are co-lead arrangers of the proposed financing being obtained by BC Partners and Silver Lake. BC Partners and Silver Lake are equal equity partners in this fully committed financed transaction.
MultiPlan, Inc. is the industrys most comprehensive provider of healthcare cost management solutions. The company provides a single gateway to a host of primary, complementary and out-of-network strategies for managing the financial risks associated with healthcare claims. Clients include large and mid-sized insurers, third party administrators, self-funded plans, HMOs and other entities that pay claims on behalf of health plans. For more information, visit www.multiplan.com.
BC Partners is a leading international private equity firm with advised funds of approximately 10 billion. Established in 1986, the firm operates as an integrated team through offices in Europe and North America to acquire and develop businesses and create value in partnership with management. Since inception, BC Partners has made 73 investments with a total enterprise value of approximately 67 billion. Its healthcarerelated investments include General Healthcare Group, Hirslanden, Centro Medico Teknon and Synlab. More information about BC Partners can be found at www.bcpartners.com.
Silver Lake is the leader in private investments in technology, technology-enabled, and related growth industries. Silver Lake invests with the strategic and operational insights of an experienced industry participant. The firm has over 90 investment professionals located in New York, Menlo Park, San Francisco, London, Hong Kong and Tokyo and manages over $14 billion across large cap and middle market private investment strategies as well as a credit investment strategy. Its portfolio includes or has included technology industry leaders such as Avago, Avaya, Business Objects, CDW, Flextronics, Gartner, Gerson Lehrman, Instinet, Intelsat, IPC, Mercury Payment Systems, NASDAQ OMX, NXP, Sabre, Seagate Technology, Serena, Skype, Spreadtrum, SunGard Data Systems, UnityMedia and Vantage Data Centers. For more information, please visit www.silverlake.com.
The Carlyle Group is a global alternative asset manager with $90.5 billion of assets under management committed to 67 funds as of March 31, 2010. Carlyle invests across three asset classes private equity, real estate and credit alternatives in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $60.6 billion of equity in 969 transactions. The Carlyle Group employs more than 880 people in 19 countries. In the aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than 398,000 people around the world. www.carlyle.com
Welsh, Carson, Anderson & Stowe is one of the largest and most successful private equity investment firms in the United States. Since its founding in 1979, the Firm has organized 15 limited partnerships with total capital of $20 billion. Welsh, Carson, Anderson & Stowe focuses its investment activity in two target industries: healthcare and information/business services. The Firm is currently investing an equity fund, Welsh, Carson, Anderson & Stowe XI, L.P., and a dedicated subordinated debt fund, WCAS Capital Partners IV, L.P. See www.welshcarson.com to learn more.