Verisk sells health care services business for 820M

Jersey City-based data analytics provider Verisk Analytics Inc. has agreed to sell its health care services business to a private equity firm for $820 million, it announced Monday.An affiliate of Veritas Capital, based in New York, will pay $720 million in cash plus a $100 million promissory note for the Waltham, Massachusetts-based business, the two companies said in a news release. The deal is expected to close by June 30, pending customary approvals and conditions.

“We are pleased to announce this transaction, which both represents value creation for our shareholders and will allow us to focus on businesses more closely aligned with our strategy, distinctives and global ambitions,” Scott Stephenson, Verisk Analytics’ chairman, CEO and president, said in a prepared statement. “We are glad to have found strong ownership for our health care services business. The sale will enhance our focus on proprietary data analytics in our key vertical markets.”

Upon closing, Verisk Health will be renamed, but it will continue to operate out of its Massachusetts headquarters as an independent company.

“Every private and public enterprise in health care is under pressure to improve performance and lower costs,” Ramzi Musallam, Veritas managing partner, said in a statement. “Verisk Health’s sophisticated data services, analytics and technologies are increasingly critical tools to help achieve those goals. We look forward to partnering with the talented Verisk Health team and applying our capital and deep experience to help the business grow and meet this rapidly expanding demand.”

Morgan Stanley and SunTrust Robinson Humphrey are serving as Verisk Analytics’ financial advisers, while McCarter & English LLP and Davis Polk & Wardwell are serving as legal advisers. Skadden, Arps, Slate, Meagher & Flom is serving as Veritas’ legal adviser.