ATLANTA--(BUSINESS WIRE)--Cotiviti Holdings Inc. (NYSE:COTV) (“Cotiviti”), a leading provider of analytics-driven payment accuracy solutions primarily focused on the healthcare industry, is pleased to announce that it has completed its acquisition of RowdMap, Inc. (“RowdMap”) effective July 14, 2017. Based in Louisville, Kentucky, RowdMap is a payer-provider, value-based analytics company. The acquisition broadens Cotiviti’s data analytics capabilities and provides adjacent solutions to address the overall healthcare market shift from volume to value.
Cotiviti paid $70 million in cash, subject to certain adjustments and funded entirely with available liquidity. Cotiviti also issued an aggregate of 768,021 shares of restricted Common Stock to certain employees of RowdMap as a material inducement to their employment with Cotiviti, and in reliance on New York Stock Exchange Rule 303A.08. Half of these shares are subject to performance-based vesting requirements. The other half are subject to continued employment with Cotiviti, with one-third vesting on each of the first three anniversaries of the closing of the acquisition.
About Cotiviti
Cotiviti is a leading provider of payment
accuracy and insight driven solutions that helps healthcare payers and
retailers achieve their business objectives by unlocking value from the
incongruities the company discovers in the complex interactions
customers have with stakeholders. Cotiviti helps clients capture over
$3.7 billion annually through improved payment accuracy. Cotiviti
provides services to over twenty of the top twenty-five U.S. healthcare
payers and eight of the top ten U.S. retailers. To learn more, http://www.cotiviti.com.
About RowdMap
RowdMap is a payer-provider, value-based
analytics company employing Risk-Readiness® Benchmarks to assist health
plans, physician groups, and hospital systems identify, quantify, and
reduce low-value care. Payers and physicians use RowdMap’s physician and
population health benchmarks to create strategies that put the highest
performing physicians at the center of networks and then design
products, organize clinical programs, and coordinate sales and marketing
around them. To learn more, http://www.rowdmap.com.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties. All statements
other than statements of historical fact or relating to present facts or
current conditions included in this press release are forward-looking
statements. Forward-looking statements give our current expectations and
projections relating to our financial condition, results of operations,
plans, objectives, future performance and business. You can identify
forward-looking statements by the fact that they do not relate strictly
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“intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,”
“should,” and other words.
The forward-looking statements contained in this press release are based on assumptions that we have made in light of our industry experience and our perceptions of historical trends, current conditions, expected future developments and other factors that we believe are appropriate under the circumstances. These statements are not guarantees of performance or results. These assumptions and our future performance or results involve risks and uncertainties (many of which are beyond our control). Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: our inability to successfully leverage our existing client base by expanding the volume of claims reviewed and cross-selling additional solutions; improvements to healthcare claims and retail billing processes reducing the demand for our solutions or rendering our solutions unnecessary; healthcare spending fluctuations; our clients declining to renew their agreements with us or renewing at lower performance fee levels; inability to develop new clients; delays in implementing our solutions; system interruptions or failures, including cyber-security breaches, identity theft or other disruptions that could compromise our information; our failure to innovate and develop new solutions for our clients; our failure to comply with applicable privacy, security and data laws, regulations and standards; changes in regulations governing healthcare administration and policies, including governmental restrictions on the outsourcing of functions such as those that we provide; loss of a large client; consolidation among healthcare payers or retailers; slow development of the healthcare payment accuracy market; negative publicity concerning the healthcare payment industry or patient confidentiality and privacy; significant competition for our solutions; our inability to protect our intellectual property rights, proprietary technology, information, processes and know-how; compliance with current and future regulatory requirements; declines in contracts awarded through competitive bidding or our inability to re-procure contracts through the competitive bidding process; our failure to accurately estimate the factors upon which we base our contract pricing; our inability to manage our growth; our inability to successfully integrate and realize synergies from any future acquisitions or strategic partnerships including our acquisition of RowdMap; our failure to maintain or upgrade our operational platforms; our failure to re-procure our Medicare Recovery Audit Contractor program contract; litigation, regulatory or dispute resolution proceedings, including claims or proceedings related to intellectual property infringements; our inability to expand our retail business; our inability to manage our relationships with information suppliers, software vendors or utility providers; fluctuation in our results of operations; changes in tax rules; risks associated with international operations; our inability to realize the book value of intangible assets; our success in attracting and retaining qualified employees and key personnel; and general economic, political and market forces and dislocations beyond our control; risks related to our substantial indebtedness and holding company structure; volatility in bank and capital markets; our status as a controlled company and as an emerging growth company; and provisions in our amended and restated certificate of incorporation. Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements.
Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
