GIC to invest in healthcare cost-management firm

NEW YORK • Private equity firm Hellman & Friedman has agreed to buy MultiPlan Inc, a provider of healthcare cost-management services.

Sovereign wealth fund GIC and Leonard Green & Partners will also invest along with Hellman & Friedman, a statement issued on Thursday stated. It did not disclose the financial terms of the deal, but sources said the deal will be valued at about US$7.5 billion (S$10.2 billion).

Starr Investment Holdings and Partners Group will retain minority investments in MultiPlan, according to the statement.

MultiPlan helps healthcare companies manage costs and measure financial risks, working with almost 900,000 providers and handling about 40 million claims each year, according to its website.

The company was acquired by Starr and Partners Group in 2014 for about US$4.4 billion, people with knowledge of the transaction said.

Starr, an investment firm, forms part of Starr Companies, which is headed by Mr Maurice Greenberg, the former chairman of American International Group.

Hellman, founded in 1984, is one of the world's largest private equity firms, having raised US$10 billion for its eighth fund in 2014.

The group invests in a variety of sectors, including technology, media and telecommunications, finance, insurance and industrials, according to its website.

Barclays, Goldman Sachs Group and Simpson Thacher & Bartlett are advising Hellman & Friedman. JP Morgan Chase and Kirkland & Ellis are advising MultiPlan and the seller.

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A version of this article appeared in the print edition of The Straits Times on May 07, 2016, with the headline 'GIC to invest in healthcare cost-management firm'. Print Edition | Subscribe