M&A Deal Summary

Magellan Health Acquires Veridicus Health

On November 21, 2016, Magellan Health acquired healthcare services company Veridicus Health from Gauge Capital and Leavitt Equity Partners for 75M USD

Acquisition Highlights
  • This is Magellan Health’s 7th transaction in the Healthcare Services sector.
  • This is Magellan Health’s 4th largest (disclosed) transaction.
  • This is Magellan Health’s 8th transaction in the United States.
  • This is Magellan Health’s 1st transaction in Utah.

M&A Deal Summary

Date 2016-11-21
Target Veridicus Health
Sector Healthcare Services
Buyer(s) Magellan Health
Sellers(s) Gauge Capital
Leavitt Equity Partners
Deal Type Add-on Acquisition
Deal Value 75M USD

Target

Veridicus Health

Salt Lake, Utah, United States
Veridicus Health is a provider of a comprehensive and customizable pharmacy solutions. It offers clinical care management, medication therapy management and pharmacy benefit management services.

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Buyer(S) 1

Buyer

Magellan Health

Phoenix, Arizona, United States

Category Company
Founded 1969
Sector Healthcare Services
Revenue 7.2B USD (2019)
DESCRIPTION
Entrance to Magellan's office in Columbia, Maryland.
Entrance to Magellan's office in Columbia, Maryland.

Magellan Health, Inc. is a provider of managed behavioral healthcare services, radiology benefit management services, and specialty pharmaceutical management services. Magellan Health was formed in 1969 and is based in Scottsdale, Arizona.


DEAL STATS #
Overall 8 of 10
Sector (Healthcare Services) 7 of 9
Type (Add-on Acquisition) 7 of 9
State (Utah) 1 of 1
Country (United States) 8 of 10
Year (2016) 3 of 3
Size (of disclosed) 4 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-16 Armed Forces Services

Arlington, Virginia, United States

Armed Forces Services Corp. is a provider of behavioral health and specialty services to various agencies of the federal government, including all five branches of the U.S. Armed Forces.

Buy $118M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-13 Senior Whole Health

Cambridge, Massachusetts, United States

Senior Whole Health LLC is a privately-held company offering intensive, integrated case management services for Medicare/Medicaid dual eligibles and Medicare Part D. Senior Whole Health was founded in 2004 and is based in Cambridge, Massachusetts.

Buy -

Seller(S) 2

SELLER

Gauge Capital

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2013
PE ASSETS 3.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Gauge Capital is a lower middle-market private equity firm focused on acquiring companies throughout the US and Canada. Gauge seeks businesses operating in the business services, healthcare services, consumer products, and food sectors. The Firm targets companies with $5 to $40 million of EBITDA. Prospective transaction situations include management buyouts, recapitalizations, divestitures, take privates, consolidations, and growth capital financings. Gauge Capital was formed in 2013 and is headquartered in Southlake, Texas.


DEAL STATS #
Overall 2 of 10
Sector (Healthcare Services) 1 of 2
Type (Add-on Acquisition) 1 of 2
State (Utah) 1 of 2
Country (United States) 2 of 10
Year (2016) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-01 EMSAR

Austin, Texas, United States

EMSAR is a service solutions provider offering services and repairs across a diverse set of vertical industries for global leaders in the healthcare, laboratory, critical power, security, and self-service kiosk industries. EMSAR was founded in 1998 and is based in Austin, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-09 Circa

Milwaukee, Wisconsin, United States

Circa is a provider of regulatory compliance and recruitment solutions. The company provides federal contractors with a fully outsourced solution to comply with several regulations of the Office of Federal Contract Compliance Programs (OFCCP) and also maintains a network of over 600 locally-focused online employment websites. Circa was formed in 1994 and is headquartered in Milwaukee and has additional offices in Minneapolis and Washington, D.C.

Buy -
SELLER

Leavitt Equity Partners

Investor


Category Private Equity Firm
Founded 2014
PE ASSETS 400M USD
Size Middle-Market
Type Sector Focused
DESCRIPTION

Leavitt Equity Partners is the private equity arm of Leavitt Partners, a healthcare focused consulting firm. Leavitt looks to partner with and invest in growth-oriented healthcare services companies throughout the US. Leavitt Equity Partners was formed in 2014 and is headquartered in Salt Lake City, Utah.


DEAL STATS #
Overall 1 of 2
Sector (Healthcare Services) 1 of 1
Type (Add-on Acquisition) 1 of 2
State (Utah) 1 of 2
Country (United States) 1 of 2
Year (2016) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-05-05 Ivy Rehab

White Plains, New York, United States

Ivy Rehab is a provider of management support services to a network of 45 outpatient physical therapy centers, consisting of 43 owned and two managed centers. The Company provides a comprehensive offering of physical therapy services through its clinics in the Northeast and Midwest regions of the United States. Ivy Rehab was founded in 2003 and is based in White Plains, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-20 AMPS

Phoenix, Arizona, United States

AMPS provides its services to mid-sized and large employers, health plans, and municipalities to reduce healthcare expenditures without negatively affecting member benefits or health outcomes. AMPS is a national leader in reference based reimbursement, the non-PPO based health plan delivery model that has proven to reduce costs for employers and healthcare plans by 30% or more over conventional PPO options. AMPS also specializes in the review and audit of large healthcare bills prior to payment. AMPS was founded in 2005 and is based in Phoenix, Arizona.

Buy -