Bedminster-based Zelis Healthcare, backed by Parthenon Capital and Bain Capital, has agreed to acquire Payer Compass, according to a Monday announcement.
The transaction is expected to close in the third quarter. Specific terms of the transaction were not disclosed, but multiple reports indicate a value of roughly $180 million.
Together, Zelis and Payer Compass will leverage advanced technology and best-of-breed approaches to create reference-based pricing solutions to manage rising health care claims cost for clients and their members.
“We’re committed to our mission of making care more affordable and transparent for all. Combining Payer Compass’ innovative platform with our existing network solutions and payment integrity offerings will do just that,” Amanda Eisel, CEO of Zelis, said in a statement. “Through our combined assets, we’ll have the people, technology and shared energy to generate more savings for our clients and continue to positively impact health care’s rising costs and complexity.”
Jay Deady, president of claims cost solutions at Zelis, added: “Health care costs continue to increase without an end in sight. The burden on consumers to understand, navigate and address these expenses is overwhelming. The combination of these outstanding companies will drive technical and service innovation to make a difference.”
Spectrum Equity, a leading growth equity firm, and Health Enterprise Partners, a health care-focused investment firm, have been investors in Payer Compass since 2019. Triple Tree LLC. served as the exclusive financial adviser for this transaction. Payer Compass was represented by Latham & Watkins LLP and Zelis was represented by Kirkland & Ellis.
