Investing.com -- Cotiviti, a healthcare data company backed by KKR, is reportedly on the brink of finalizing a deal to acquire its smaller competitor, Edifecs, for a sum slightly above $3 billion.
This development comes after Cotiviti reportedly declined a larger bid from healthcare group UnitedHealth (NYSE:UNH), due to concerns that regulatory authorities might obstruct the acquisition.
UnitedHealth had proposed a purchase price of approximately $3.5 billion for Edifecs, but the offer is expected to be turned down in favor of Cotiviti’s lower bid, which values the healthcare data firm at $3.05 billion, the Financial Times reported, citing people familiar with the matter.
The owners of Edifecs are inclined towards Cotiviti’s offer, primarily due to fewer potential antitrust issues related to the buyer, the report added.
Compared to the $500 billion healthcare behemoth UnitedHealth, Cotiviti is seen as a less risky option, the report further said, adding that Cotiviti’s readiness to expedite the acquisition process also played a role in their favor.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.