Cotiviti Holdings [NYSE:COTV], the Atlanta-based provider of payment accuracy and analytics for the healthcare industry, is in advanced stages of exploring a sale, said three sources briefed on the situation.
The health care information technology (HCIT) company, backed by financial sponsor Advent International, is expected to collect final bids in around two weeks, two of the sources said. Financial sponsors are participating in the sale process, the three sources said. The third source said Goldman Sachs is advising on the sale.
If a deal is reached, Cotiviti is expected to be valued around USD 4.5bn in enterprise value, two of the sources said. The company has around a USD 3.8bn enterprise value, suggesting a current multiple of over 12.5x EBITDA.
[Following publication of this story, Cotiviti shares jumped over 17%, boosting its enterprise value to over USD 4.2bn.]
Advent took Cotiviti public in May 2016 and has since seen its stock soar from USD 19 to over USD 34 per share. The private equity firm has sold shares in secondary offerings following the IPO and currently holds around a 44% stake, according to Cotiviti’s most recent proxy filing. Goldman served as lead underwriter on the IPO.
Cotiviti, Advent and Goldman Sachs declined comment. Thoma Bravo, Veritas and New Mountain did not respond to requests for comments.
by Bhavna Kaul and Dane Hamilton