Cotiviti acquired by Verscend Technologies: fairness opinion
Announced June 19, 2018 · Merger ·
DEFM14A filed July 23, 2018
Enterprise value
$4.9B
EV / LTM EBITDA
16.3x
EBITDA $301M · 41% margin
EV / LTM revenue
6.61x
revenue $741M
DCF discount rate
8.5%
Deal terms
Consideration—
Price per share—
Premium—
Premium basis—
StructureMerger
Termination fee—
Reverse termination fee—
Go-shopNone
Outside date—
FilingDEFM14A · EDGAR index
3,000+ healthcare deal-level valuation multiples
The Valuation database includes financial details for more than 3,000 healthcare M&A transactions, private and public, with deal-level multiples, categorized by segment, type, and year.
Management projections
| Projection year | Year 1 | Year 2 | Year 3 | Year 4 | CAGR |
|---|---|---|---|---|---|
| Revenue | $817M | $896M | $996M | $1.1B | 10.7% |
| Revenue growth | 10.3% | 9.7% | 11.2% | 11.2% | |
| EBITDA | $330M | $382M | $439M | $502M | 15.0% |
| EBITDA growth | 9.6% | 15.8% | 14.9% | 14.4% | |
| EBITDA margin | 40% | 43% | 44% | 45% | |
| Implied EV / EBITDA | 14.8x | 12.8x | 11.2x | 9.8x |
Year-1 growth is against LTM at announcement ($741M revenue, $301M EBITDA); later years are year over year.
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