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Starr, Partners Group lead purchase of MultiPlan

Published: Monday, Feb. 17, 2014 4:25 p.m. CST

NEW YORK – A group led by Starr Investment Holdings said Monday it is buying MultiPlan Inc., which helps manage claims for large health insurers.

The purchase price was $4.4 billion, according to a person close to the deal, who spoke on the condition of anonymity because the companies did not publicly disclose terms.

Starr and Switzerland-based Partners Group said their group had agreed to buy MultiPlan from private equity firms Silver Lake and BC Partners.

Starr is part of C.V. Starr & Co., which is led by former American International Group Inc. CEO Maurice “Hank” Greenberg.

MultiPlan says on its website it has nearly 900,000 health care providers under contract and processes 40 million claims a year for payers in health care and other markets.

Private equity firms such as Silver Lake typically make investments for a short period, perhaps three to five years. Starr and Partners Group are taking a longer view and believe there will be growth in the business of analyzing and managing claims at a time of rising medical costs.

Carlyle and another firm sold MultiPlan to Silver Lake and BC Partners in 2010. Published reports at the time valued that deal at $3.1 billion.

The sale announced Monday included financing from Barclays PLC and J.P. Morgan Chase & Co. It is expected to close by the end of the first quarter.

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