KKR Targets Healthcare Analytics Giant Cotiviti at $11B Valuation, Buyout Firms Circle Macy's, Bain's 18x Return on Wind Turbines

KKR Targets Healthcare Analytics Giant Cotiviti at $11B Valuation, Buyout Firms Circle Macy's, Bain's 18x Return on Wind Turbines

Private equity news the week of December 11th, 2023.

Insights

Chart of the Week: The industry that has seen the greatest increase in private equity sponsorship over the past five years has been software — although nearly all of that activity has occurred since 2021, when valuations declined and VC funding began to dry up. As a result, software companies have become much more appealing to traditional buyout firms. (Read More)

  • Private Equity Firms Are Increasing Exposure to These Industries (Read More)
  • AI in Private Equity Report (Read More)
  • The Profile of a Private Equity-backed CEO (Read More)
  • Meet KKR’s Portfolio Operations Group (Read More)
  • Healthcare Private Equity Buyouts Remain Strong Amid Pan-European Consolidation (Read More)

Deal News

KKR is in talks to acquire a 50% stake in healthcare technology company Cotiviti from Veritas Capital at a valuation near $11 billion. Cotiviti produces data analytics software that helps healthcare providers manage costs and compliance. Veritas acquired Cotiviti for $4.1 billion in 2018. (Source)

Macy’s is weighing a $5.8 billion buyout offer from Arkhouse Management and Brigade Capital Management. The investors think Macy’s needs to be a private company if it has any chance of pulling-off a successful turnaround. The company has been subject to criticism from multiple activist investors over the years. Macy’s CEO Jeff Gennette is set to retire next year and will hand over the reigns to former Bloomingdale’s CEO Tony Spring. (Source)

Bain Capital is selling Japanese energy company Japan Wind Development (JWD) for $1.4 billion. The company operates 293 wind turbines and other renewable energy assets. Bain acquired JWD in 2015 for about $80 million, making the sale a 17.5x exit for the buyout firm. (Nikkei)

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