Health and Healthcare

Cotiviti Holdings Files for IPO

Chris Lange

Published: May 2, 2016 9:05 am

Last Updated: January 13, 2020 10:01 am

Cotiviti Holdings has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the New York Stock Exchange under the symbol COTV.

The underwriters for the offering are Goldman Sachs, JPMorgan, Barclays, Citigroup, Credit Suisse, Morgan Stanley, RBC Capital Markets and SunTrust Robinson Humphrey.

This company is a leading provider of analytics-driven payment accuracy solutions, focused primarily on the health care sector. Its integrated solutions help clients enhance payment accuracy in an increasingly complex health care environment. Cotiviti leverages its robust technology platform, configurable analytics, proprietary information assets and expertise in health care reimbursement to help clients enhance their claims payment accuracy.

Cotiviti helps its health care clients identify and correct payment inaccuracies, which resulted in over $2.7 billion in savings in 2015. The company works with over 40 health care organizations, including eight of the 10 largest U.S. commercial, Medicare and Medicaid managed health plans, as well as the Centers for Medicare & Medicaid Services (CMS). This is also a leading provider of payment accuracy solutions to over 40 retail clients, including eight of the 10 largest retailers in the United States.

In the filing, Cotiviti detailed its finances as:

Our track record of consistently delivering value for our clients has enabled strong growth in our revenue and profitability, especially within our core healthcare payer client base. For the year ended December 31, 2015, our total revenue was $541.3 million. In this same period, we generated Adjusted EBITDA of $203.4 million, representing 37.6% of revenue, and net income of $13.9 million, representing 2.6% of revenue.

The company intends to use the net proceeds of the offering to repay its indebtedness and for general corporate purposes.