NEW YORK (The Deal) -- New York investor Starr Investment Holdings and Swiss private equity firm Partners Group have agreed to acquire healthcare cost-management technology provider Multiplan in a deal valuing the business at about $4.4 billion.
The sellers are technology-focused private equity firm Silver Lake Partners and U.K. buyout firm BC Partners.
Starr and its Zurich-listed co-investor bill themselves as joint lead investors but didn't disclose their respective weights within the partnership and the exact price of the deal.
Partners Group's New York managing director, Joel Schwartz, declined to comment on terms of the deal, or detail the debt-to-equity ratio of the investment. But he did say that the deal had fully committed financing from Barclays plc and JPMorgan Chase & Co. (JPM) with "market levels" of leverage and very favorable terms.
He said the agreement had taken "a few months" to put in place, but had not been achieved through an auction.
"It's been on an exclusive basis throughout," he said.
That exclusivity was partly based on the long-standing relationship between Starr, which is led by former American International Group (AIG) CEO Hank Greenberg, and New York-based Multiplan, according to the target's CEO Mark Tabak. "Starr's historical relationship with MultiPlan and its executives was fundamental in bringing our firms together," Tabak said in a statement.
"With the investment led by Starr and Partners Group, we have the long-term capital, strategic support and collective set of relationships to further grow our company and evolve our solutions in the rapidly-changing healthcare market and beyond."