BC Partners and Silverlake sell insurance firm to ex-AIG boss
PRIVATE equity firms BC Partners and Silverlake yesterday doubled their money on US healthcare firm MultiPlan after offloading the business to a group led by former AIG boss Hank Greenberg.
Greenberg’s Starr Investments has partnered with Swiss private markets giant Partners Group to buy MultiPlan, according to a statement yesterday, in a deal which is thought to value the company at about $4.4bn (£2.6bn).
BC, which owns Phones4U, and Dell PC owner Silverlake bought MultiPlan for €2.3bn (£1.8bn) in 2010 from Carlyle Group.
Both sides invested about £360m of equity each into the business, according to a person familiar with the transaction, and borrowed about £1.2bn from banks to help fund the rest of the deal.
“Since our investment in 2010, MultiPlan has … strengthened its foundation for long-term growth through enhanced technology capabilities, expanded customer relationships and deeper penetration into adjacent markets and new product lines,” BC’s managing partner Raymond Svider and Silverlake’s managing partner Egon Durban said in a joint statement.
The deal marks another milestone for Starr Investment’s Greenberg, who led AIG for 37 years between 1968 and 2005 and has been busy rebuilding a collection of insurance assets at his new venture Starr.
MultiPlan, founded in 1980, has about 68m customers and offers technology services to about 900,000 healthcare providers.
Bank of America Merrill Lynch, Credit Suisse and Goldman Sachs advised BC and Silverlake.