Investment news

Today, a group led by Starr Investment Holdings, an investment firm focused on long-term capital investments, and Partners Group, a global private markets investment management firm, on behalf of its clients, announced the acquisition of MultiPlan, Inc. from Silver Lake, the global leader in technology investing, and BC Partners, a leading international private equity firm. Terms of the transaction were not disclosed.

Founded in 1980, MultiPlan delivers comprehensive transaction-based solutions to healthcare payers. With a network of over 900’000 healthcare providers and extensive proprietary analytics, MultiPlan generates over USD 11 billion in medical cost savings on about 40 million claims annually. Leveraging technology, data and analytics, MultiPlan optimizes healthcare transactions by reducing medical costs through its network- and analytics-based solutions and efficient transaction processing through its unique technology-enabled platform.

“Today’s announcement marks the next step in an exciting journey for MultiPlan,” said Mark Tabak, MultiPlan’s Chief Executive Officer. “Starr’s historical relationship with MultiPlan and its executives was fundamental in bringing our firms together. With the investment led by Starr and Partners Group, we have the long-term capital, strategic support and collective set of relationships to further grow our company and evolve our solutions in the rapidly-changing healthcare market and beyond.”

Mr. Tabak added: “We appreciate the strategic support BC Partners and Silver Lake provided over the last several years, which has helped position MultiPlan to continue to lead the industry with unmatched cost containment offerings that benefit our customers.”

“MultiPlan operates at the center of the healthcare ecosystem and is uniquely positioned to continue to expand its service offering and drive value and cost savings for its customers,” said Geoffrey Clark, Senior Managing Director of Starr Investment Holdings.

“In an environment of escalating medical costs, MultiPlan’s value proposition is increasingly critical and its innovative solutions ever more impactful to corporations and, more importantly, the lives of their employees,” said Joel Schwartz, a Managing Director of Partners Group in New York.

“It has been our privilege to partner with MultiPlan and we are proud of the company’s growth under our ownership,” said Raymond Svider, Managing Partner of BC Partners, and Egon Durban, Managing Partner of Silver Lake. “Since our investment in 2010, MultiPlan has successfully integrated its former competitor Viant and strengthened its foundation for long-term growth through enhanced technology capabilities, expanded customer relationships and deeper penetration into adjacent markets and new product lines.”

The transaction has fully committed financing from Barclays PLC and J.P. Morgan Chase & Co. and is subject to regulatory approvals and customary closing conditions.

Barclays PLC, J.P. Morgan Chase & Co., Kirkland & Ellis LLP, Marwood Group LLC and KPMG LLP are advising Starr Investment Holdings, with King & Spalding LLP advising Partners Group.

Bank of America Merrill Lynch, Credit Suisse, Goldman, Sachs & Co., RBC Royal Bank, Dean Bradley Osborne, LionTree Advisors LLC and The Raine Group LLC are advising MultiPlan, BC Partners and Silver Lake.