Emdeon to acquire Altegra Health for $910M in cash

Emdeon to acquire Altegra Health

Emdeon has entered into a definitive agreement to acquire privately held Altegra Health, which provides technology and intervention platforms that combine data aggregation and analytics with member engagement and reporting capabilities. The acquisition is expected to combine Altegra Health’s risk adjustment and quality analytics and Emdeon’s Intelligent Healthcare Network, revenue cycle management and payment solutions, to enable the delivery of innovative products that help customers elevate care quality, optimize financial performance, and improve the member and patient experience.

The combined entity is expected to strengthen the existing capabilities of both organizations and also create new, innovative platforms that will address the opportunities and challenges created by the evolution of a more dynamic healthcare marketplace and regulatory landscape.

Headquartered in Miami Lakes, Florida, Altegra Health operates in all 50 states, Puerto Rico and the Philippines.“Altegra Health has created leading end-to-end solutions that provide health plans and other risk-bearing organizations with the data, insights and related services they need to expertly manage care, ensure appropriate reimbursement and engage individuals in improving their use of the healthcare system,” said Neil de Crescenzo, president and CEO for Emdeon. “By adding these capabilities and leveraging our Intelligent Healthcare Network, we can further expand the products and services we provide our customers as they address the needs of value-based healthcare.”

Headquartered in Miami Lakes, Florida, Altegra Health operates in all 50 states, Puerto Rico and the Philippines.

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.

Emdeon will acquire Altegra Health for approximately $910 million in cash. The company has obtained debt and equity financing commitments to support the deal, 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, and is expected to close in the third quarter of 2015.

Greenhill & Co. is advising Emdeon in the transaction, while Altegra Health is represented by Goldman Sachs and Triple Tree in the transaction.

UPDATE: The acquisition has been closed onĀ August 13, 2015.