By ET Bureau - April 03, 2021 3 Mins Read
Gainwell Technologies (“Gainwell”), a portfolio company of Veritas Capital (“Veritas”) and a leading provider of solutions that are vital to the administration and operations of health and human services programs, today announced it has completed its previously announced acquisition of HMS Holdings Corp. (“HMS”), an industry-leading healthcare technology, analytics and engagement solutions provider.
Veritas plans to optimize the HMS solution set across Gainwell and Veritas-backed Cotiviti, Inc. (“Cotiviti”), a leading provider of data-driven healthcare solutions. As part of the transaction, Gainwell acquired HMS’ capabilities focused on the Medicaid market, including coordination of benefits (“COB”) and payment integrity solutions delivered to states, and COB solutions delivered to Medicaid managed care organizations. Cotiviti acquired from Gainwell the HMS payment integrity and population health management capabilities focused on health plan and federal markets.
This transaction expands both Gainwell’s and Cotiviti’s capabilities with unique, data-driven technology and service solutions expected to drive greater impact in the healthcare market.
Clients in the markets served by Gainwell and Cotiviti will now have access to a broader range of complementary, scalable and flexible solutions, which enable them to improve health outcomes and quality while reducing waste.
“The combination of HMS and Gainwell gives states and Medicaid managed care organizations access to the broadest portfolio of offerings in the industry,” said Paul Saleh, President and Chief Executive Officer of Gainwell. “Together, we will empower clients through innovative technology and differentiated solutions to deliver great health and human services outcomes.”
Emad Rizk, M.D., President and Chief Executive Officer of Cotiviti, said, “HMS’ data sets, analytical capabilities, and industry expertise in commercial payment integrity and population health management are highly complementary to Cotiviti’s product portfolio, and we look forward to introducing new and expanded solutions to the marketplace to help our clients contain costs, eliminate waste, and speed quality improvement for the healthcare industry overall.”
“We are thrilled to welcome the HMS team to both Gainwell and Cotiviti,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas, a leading investor in companies operating at the intersection of technology and government. “HMS’ differentiated capabilities across the government and commercial healthcare spectrum will enable both Gainwell and Cotiviti to become even more strategic to their customers. We look forward to both organizations’ continued growth as they deliver transformational solutions to their respective areas of the healthcare market.”
Under the terms of the agreement, HMS shareholders will receive merger consideration in the amount of $37.00 in cash for each share of HMS common stock they hold (without interest and subject to any applicable withholding taxes or other amounts required to be withheld therefrom under applicable law).
Broadridge Corporate Issuer Solutions has been appointed as paying agent in connection with the merger and will be mailing a letter of transmittal to all HMS shareholders of record within two business days. The letter of transmittal will instruct shareholders on how to surrender their shares of HMS common stock in exchange for the merger consideration.
The transaction was announced on Dec. 21, 2020 and received approval from HMS shareholders on March 26, 2021. As a result of the completion of the transaction, shares of HMS common stock were removed from listing on the Nasdaq Stock Market (“Nasdaq”), with trading in HMS shares suspended prior to the opening of business today.
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