M&A Deal Summary

Catamaran Acquires National Medical Health Card Systems

On April 30, 2008, Catamaran acquired business services company National Medical Health Card Systems from New Mountain Capital and HealthEdge Investment Partners for 143M USD

Acquisition Highlights
  • This is Catamaran’s 1st transaction in the Business Services sector.
  • This is Catamaran’s 6th largest (disclosed) transaction.
  • This is Catamaran’s 1st transaction in the United States.
  • This is Catamaran’s 1st transaction in New York.

M&A Deal Summary

Date 2008-04-30
Target National Medical Health Card Systems
Sector Business Services
Buyer(s) Catamaran
Sellers(s) New Mountain Capital
HealthEdge Investment Partners
Deal Type Add-on Acquisition
Deal Value 143M USD
Advisor(s) J.P. Morgan Securities LLC (Financial)
Bass, Berry & Sims PLC (Legal)

Target

National Medical Health Card Systems

Port Washington, New York, United States
website
National Medical Health Card Systems, Inc. is one of the nations leading providers of pharmacy benefit management services. Established in 1981, the Company has a particular emphasis on the small and middle market customer segment, with notable strengths in the areas of customer service, cost containment and fair reporting.

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Buyer(S) 1

Buyer

Catamaran

Schaumburg, Illinois, United States

website


Category Company
Founded 1993
Sector Healthcare Services
Employees4,000
Revenue 21.6B USD (2014)
DESCRIPTION
Catamaran's corporate headquarters in Schaumburg, Illinois.
Catamaran's corporate headquarters in Schaumburg, Illinois.

Catamaran Corporation provides pharmacy benefit management (PBM) services and healthcare information technology (HCIT) solutions to the healthcare benefits management industry in North America.


DEAL STATS #
Overall 1 of 10
Sector (Business Services) 1 of 1
Type (Add-on Acquisition) 1 of 10
State (New York) 1 of 1
Country (United States) 1 of 10
Year (2008) 1 of 2
Size (of disclosed) 6 of 7
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-12-22 Zynchros

Seattle, Washington, United States

Zynchros serves Health Insurers, Pharmacy Benefit Managers (PBMs) and Healthcare IT vendors with a family of on-demand solutions and services.

Buy -

Seller(S) 2

SELLER

New Mountain Capital

New York, New York, United States

website


Category Private Equity Firm
Founded 2000
PE ASSETS 35.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

New Mountain Capital is a private investment firm focused on investment in public and private companies in a variety of industries. New Mountain generally invests $100 to $500 million per transaction and looks for businesses with strong market positions and high barriers to entry. New Mountain also prefers businesses that succeed in both good and bad economies. Sectors of interest include education, healthcare, business services, federal IT services, media, software, consumer products, logistics, financial services and technologies, and energy. New Mountain Capital was formed in 2000 and is based in New York City.


DEAL STATS #
Overall 4 of 41
Sector (Business Services) 1 of 5
Type (Add-on Acquisition) 2 of 20
State (New York) 1 of 4
Country (United States) 3 of 38
Year (2008) 1 of 1
Size (of disclosed) 13 of 14
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-11-01 Deltek

Herndon, Virginia, United States

Deltek, Inc. is a provider of enterprise applications software designed specifically for project-focused businesses. The Company's software applications enables organizations to automate mission-critical business processes around the engagement, execution and delivery of projects. Deltek is based in Herndon, Virginia.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-05-01 TIAA Bank

Jacksonville, Florida, United States

TIAA Bank provides full-service, nationwide banking and lending services to consumer, commercial and institutional clients through a variety of channels, including online, its Florida-based financial centers and at other business offices throughout the country.

Buy -
SELLER

HealthEdge Investment Partners

Tampa, Florida, United States

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 2005
Size Small
Type Sector Focused
DESCRIPTION

HealthEdge Investment Partners is an operating-oriented private equity firm that targets the healthcare industry. The firm pursues buyouts, recapitalizations or structured investments in healthcare companies with a strong market share. HealthEdge targets businesses with enterprise value ranging between $10 million and $100 million, and with revenues ranging between $5 million and $75 million. Moreover, the firm looks for companies with EBITDA near $15 million. The firm typically commits between $5 million to $20 million of capital per company. HealthEdge focuses on the healthcare segments that involve medical products, devices and equipment, healthcare services, healthcare IT, pharmaceutical, and distribution. HealthEdge Investment Partners was founded in 2005 and is based in Tampa, Florida.


DEAL STATS #
Overall 4 of 15
Sector (Business Services) 2 of 2
Type (Add-on Acquisition) 3 of 9
State (New York) 1 of 2
Country (United States) 4 of 15
Year (2008) 1 of 1
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-04-28 Woodbury Health Products

Oceanside, New York, United States

WPI Holdings, Inc. is a direct to consumer distributor of high quality incontinence and related healthcare products to customers in the United States. Woodbury Products offers over 250 items including baby and adult diapers, pull-ups, pads, and linens with approximately 50 different diapers. Woodbury Health Products, Inc. was established in 1977 and is headquartered in Oceanside, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-05-02 POC Network Technologies

Santa Ana, California, United States

POC Network Technologies (PNT) bridges the communication gap between patients, payors and point-of-care providers with eDispense, its proprietary web-based portal. Leveraging PNT’s physician and payor networks as well as its back-office technology, eDispense supports a host of integrated solutions for the effective delivery, reimbursement and administration of products and services at the point-of-care.

Buy -