NGN Capital Joins With The
Carlyle Group To Complete The Acquisition of MultiPlan, Nation’s
Largest Independent PPO
NGN Capital teamed up with The Carlyle Group to acquire MultiPlan,
the largest independent PPO in America. The transaction closed
April 12, 2006. Financial terms were not disclosed.
MultiPlan is the nation’s oldest and largest independent
preferred provider organization (PPO) network offering nationwide
access to more than 4,200 hospitals, 100,000 ancillary care facilities
and 450,000 physicians and specialists. The company’s 2,000
clients include large and mid-sized insurers, third-party administrators,
self-funded plans, HMOs and other entities that pay claims on
behalf of health plans.
Mark Tabak, MultiPlan Chief Executive Officer, said, “The
healthcare system is in the midst of sweeping change, and in our
35 years we’ve developed not only a comprehensive suite
of healthcare cost management services, but also a transaction
and information management engine with the sophistication to embrace
the scope, speed and flexibility demands of the country’s
largest insurers. In Carlyle we have the strategic and financial
backing to propel our value even further in support of our clients’
and providers’ business and growth objectives.”
Kenneth S. Abramowitz, Managing General Partner of NGN Capital,
said, “We are pleased to participate with The Carlyle Group
in our first corporate buyout. MultiPlan is a market leader in
PPO wrap services, and is led by a strong, well-experienced management
team. We look forward to playing a constructive role on the board
of directors in helping to guide MultiPlan through its internal
growth and acquisition opportunities.” Mr. Abramowitz is
the designated board member for NGN Capital.
Bob Dahl, Managing Director and Co-head of Carlyle’s Healthcare
Group, said, “Steadily rising healthcare costs have sparked
a new wave of innovation and consolidation in the managed care
industry. We see MultiPlan’s independent, national network
and related technology as the critical building blocks in new
solutions that will emerge to support this changing market. We
look forward to working with Mark, his management team, and NGN
as we take MultiPlan to the next level of growth and success.”
PPOs, which are the most common type of health plan used today,
offer a provider network and range of value-added services to
help employers and other health plan sponsors manage the cost
of medical claims. MultiPlan offers a full range of medical cost
management solutions to a blue-ribbon list of clients, including
the national PPO network, specialty networks, negotiation services
and electronic claim routing technology. The company’s top
10 clients together deliver health coverage to more than 70 million
Americans.
About MultiPlan
For 35 years, MultiPlan has helped healthcare payers and providers
partner together to combat rising healthcare costs. MultiPlan
serves as a single gateway to a host of primary, complementary
and out-of-network strategies for managing the financial risks
associated with healthcare claims. Clients include large and mid-sized
insurers, third-party administrators, self-funded plans, HMOs
and other entities that pay claims on behalf of health plans.
For more information, visit www.multiplan.com.
About NGN Capital
NGN Capital is a global healthcare venture capital investment
firm with offices in New York, NY, Heidelberg, Germany, and Greenwich,
CT. NGN has investment capabilities across a broad spectrum of
healthcare and biotechnology segments, including drug products,
medical devices, and healthcare services, with an emphasis on
later-stage opportunities.
About The Carlyle Group
The Carlyle Group is one of the world’s largest private
equity firms, with more than $39 billion under management. With
39 funds across four investment disciplines (buyouts, venture
& growth capital, real estate and leveraged finance), Carlyle
combines global vision with local insight, relying on a top-flight
team of more than 345 investment professionals operating out of
offices in 14 countries to uncover superior opportunities in North
America, Europe, Asia and Australia.
More information on NGN can be found at www.ngncapital.com
Contact: John R. Costantino or Ken Abramowitz
+1 212-972-0077
jcostantino@ngncapital.com
kabramowitz@ngncapital.com
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