Ciox Health LLC, a portfolio company of investment firm New Mountain Capital, has acquired healthcare data service provider ArroHealth. Financial terms of the deal were not disclosed.
ArroHealth is a provider of chart retrieval and risk adjustment services for health plans and healthcare provider groups. The Hauppauge, New York-based target offers a variety of services, including: analytics, medical record retrieval, data aggregation, and risk adjustment coding. The acquisition strengthens Ciox’s capability to deliver workflow-driven processes and technology needed to facilitate the management and exchange of protected health information.
Ciox Heatlh, headquartered in Alpharetta, Georgia, facilitates the movement and transfer of healthcare information. The buyer manages the release of information, record retrieval, and health information management process. Ciox Health reports a 98 percent retention rate among its health information management clients and fulfills more than 40 million requests for information each year.
Ciox Health was formed by the 2016 merger of four companies that were all acquired by New Mountain Capital between December 2014 and September 2015. The four companies consisted of HealthPort, IOD, Care Communications, and ECS. New Mountain Capital is a New York-based private equity firm that targets businesses in the $100 million to $1 billion enterprise value range. On average, the firm looks to invest $100 million to $500 million per transaction. The firm currently manages private equity, public equity and credit funds with approximately $15 billion in aggregate capital commitments.
Originally driven by the Obama administration’s Affordable Care Act, medical professionals have shifted their interest to new technology and healthcare data providers, despite regulatory uncertainty due to a change in presidential administrations. Related deals across the middle market include: WNS Holdings Ltd. (NYSE: WNS) acquisition of management company HealthHelp for $95 million; Genstar Capital’s buying of Bracket Global LLC, a clinical trial technology and data collection service provider; and Thoma Bravo LLC’s purchase of MedeAnalytics Inc., a cloud-based financial performance analytics company for the healthcare industry.
SunTrust Robinson Humphrey (NYSE: STI) served as financial adviser to ArroHealth, while Leerink Partners LLC acted as financial adviser to New Mountain Capital and Ciox Health.