Advent-Backed Cotiviti Files for IPO Led by Goldman, JPM

Cotiviti Holdings Inc., the health-care payments processing and auditing company backed by Advent International Corp., filed for an initial public offering.

In a regulatory filing Friday, the Atlanta-based company used a placeholder of $100 million, an amount used to calculate fees that will change. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading the offering, according to the prospectus.

An IPO could value Cotiviti at about $3 billion, a person familiar with the matter said this month. The company, which helps insurance companies process and audit medical bill claims, plans to use the proceeds to repay debt and for general corporate purposes. Cotiviti works with more than 40 health-care organizations, including eight of the top 10 U.S. commercial Medicare and Medicaid managed-health plans, the filing shows.

Cotiviti was formed when Advent’s Connolly Corp. bought IHealth Technologies Inc. in 2014 in a deal valued at $1.2 billion, according to Moody’s Investors Service.

In 2015, Cotiviti posted net income of $13.9 million on net revenue of $541 million. That compares with a loss of $25.8 million in 2014, on net revenue of $441 million.

Cotiviti plans to list on the New York Stock Exchange under the symbol COTV.

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