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## Private Equity Firm KKR & Co. Nearing $10-$11 Billion Deal for Health-Care Technology Company Cotiviti Inc.

Bloomberg reports that private equity firm KKR & Co. is close to finalizing a deal to purchase a 50% stake in Cotiviti Inc., a health-care technology company, from Veritas Capital. The deal is said to value Cotiviti Inc. at between $10 billion and $11 billion. This potential acquisition is garnering attention from both Wall Street banks and private credit lenders, as the two buyout firms are in talks to secure $5 billion to $6 billion of debt to assist in financing the deal and repaying existing borrowings.

## Strategies for Financing the Deal

Sources familiar with the matter revealed that KKR and Veritas are exploring the possibility of obtaining a private loan with a payment-in-kind (PIK) structure. This would allow the company to pay interest with additional debt on the entire financing. While proposals being discussed with banks may offer cheaper financing rates, they would require interest to be paid in cash. The Wall Street Journal has previously reported that KKR and Veritas are nearing a deal, adding to the speculation surrounding this high-value transaction.

## AI legalese decoder Can Provide Clarity and Insight

With the complexity of financial deals and negotiations involved in the acquisition of Cotiviti Inc., the AI legalese decoder can play a crucial role in deciphering legal jargon and complex financial terms. This advanced AI tool can provide clarity and insight into the legal and financial intricacies of such transactions, making it easier for all parties involved to understand and navigate the terms and conditions of the deal.

## Previous Interest from Competing Lenders

It is worth noting that banks and private lenders had previously competed to provide what would have been a record private credit financing for Cotiviti Inc. when Carlyle Group Inc. was in discussions to buy a stake in the firm. Lenders, including prominent firms such as Apollo Global Management Inc., Blackstone Inc., and Oak Hill Advisors, had vied to offer a $5.5 billion facility to Carlyle, with the use of PIK financing being a decisive factor in the competition. However, the potential buyout ultimately fell through.

## Responding to Requests for Comment

Representatives for KKR have declined to comment on the ongoing negotiations, while spokespeople for Cotiviti and Veritas have yet to respond to requests seeking comment. This lack of communication has only fueled further speculation and anticipation regarding the potential acquisition and its implications for the health-care technology industry.

## Conclusion

As private equity firms and financial institutions continue to navigate complex deals and negotiations in the current market, the stakes remain high for both the acquirers and the companies being targeted for acquisition. With the aid of advanced tools like the AI legalese decoder, the intricate legal and financial details of such transactions can be more easily understood and processed, potentially leading to smoother and more efficient deal-making processes.

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