On Monday, Emdeon Inc. announced a definitive agreement to acquire Altegra Health, a provider of data aggregation and analytics for payers for approximately $910 million in cash. The acquisition will combine Altegra Health’s risk adjustment and quality analytics and Emdeon’s Intelligent Healthcare Network, revenue cycle management and payment solutions, enabling the delivery of innovative products designed to help customers elevate care quality, optimize financial performance.
Acquisition Benefits
The merged company will be uniquely positioned to support healthcare organizations as they navigate unprecedented marketplace disruption, including the growth in exchange-based insurance markets and the transition to value-based care models. It will also strengthen the existing capabilities of both organizations to create new, innovative platforms that will address the opportunities and challenges created by the evolution of a more dynamic healthcare marketplace and regulatory landscape.
As one of the largest financial and administrative networks in the United States healthcare system, Emdeon’s Intelligent Healthcare Network reaches 700,000 physicians, 105,000 dentists, 60,000 pharmacies, 5,000 hospitals, 600 vendors, 450 laboratories and 1,200 government and commercial payers and processed approximately 8.1 billion transactions in 2014.
Altegra Health is headquartered in Miami Lakes, Florida, operates in all 50 states, Puerto Rico and the Philippines and offers its products and services nationally in partnership with many of the largest and most respected Medicare Advantage and Managed Medicaid health plans, as well as health plans operating on the rapidly expanding commercial healthcare exchanges.
Financial Details
Emdeon has obtained debt and equity financing commitments to support the acquisition and anticipates paying the purchase price from a combination of available cash and proceeds from new debt and equity offerings. The acquisition is subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Act, and is expected to close in the third quarter of 2015.
