Healthcare cost management company MultiPlan to be acquired by BC Partners and Silver Lake

Jul 9 2010

BC Partners, a leading international private equity firm, and Silver Lake, the world's 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 nation's 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 world-class 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 Lake's 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.