Private Purchase of MultiPlan Marks This Year's Largest LBO

Silver Lake Partners and BC Partners have combined to create one of the year’s largest leveraged buyouts, as the two private-equity firms reached an agreement to purchase health care business MultiPlan Inc. in a transaction that values the company at $3.1 billion.

According to a WSJ article, Carlyle Group and Welsh, Carson, Anderson & Stowe (who are selling MultiPlan) are set to make three times their original investment on the company it acquired in 2006.

The move will be the year’s largest secondary buyout, where a company is acquired by one private-equity group from another, and suggests a return to confidence in the M&A market after a two-year slowdown.

Thompson Reuters reported that the deal is expected to be made up of roughly $2 billion in debt, according to a source close to the situation.

BC Partners and Silver Lake were attracted to MulitPlan due to its recurring and predictable revenue stream, as well as its focus on reducing health costs.

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