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Private Equity firm New Mountain Capital contemporaneously acquired Equian LLC from Great Point Partners for $225 million and merged it with Abry Partners’ Trover Solutions Inc. As pressure continues for managing costs in healthcare, the combined company’s technology and data capabilities will help customers capture value through increased savings and improved insights. The combined company will have more than 1,100 professionals serving more than 300 healthcare and insurance customers across the U.S., including nine of the top 10 healthcare payers, marking a milestone in the evolution of payment integrity and cost containment solutions for the healthcare and property & casualty industries. Great Point acquired Indianapolis-based Equian, then known as Health Systems International LLC, for an undisclosed sum in 2007. Rebranded as Equian in March 2014, Equian has made a number of add-on acquisitions during Great Point’s ownership, including the January acquisition of Assist Group Inc., a Lakewood, Colo.-based prepayment technology and services company, according to Dow Jones. Abry Partners acquired Trover in 2011 from fellow private equity firm Tailwind Capital Partners. The Louisville, Ky.,-based company said on its website it helps recover more than $340 million annually for its clients “Bringing Equian and Trover together will accelerate innovation and allow us to serve our customers in new value-added ways,” said Rob Bader, CEO of Trover. “This merger combines the strengths and capabilities of two highly complementary companies, resulting in a broader set of leading payment integrity services and creating an exciting company for further growth,” added Scott Mingee, CEO of Equian. “We have been working to establish a new and better platform in the payer services and technology segments of healthcare. We believe the merger of Equian and Trover creates an industry leader that will set new standards for innovation and improve the efficiency of our healthcare system. We look forward to working with management to increase the company’s investment in technology and process automation for the benefit of our customers. We believe the company will play a critical role in the market for healthcare technology and services,” said Matt Holt, Managing Director of New Mountain Capital. New Mountain Capital was advised in the transactions by Eir Partners, a new health care investment firm launched in October by Brett Carlson, who was mostly recently the chief executive of iVantage Health Analytics Inc., a health analytics company that Great Point Partners sold to Chartis Group in November, according to Dow Jones. Eir also took a minority stake in the combined company. Last year new Mountain bought health-care information technology company HealthPort Inc. from Abry Partners, and merged the Alpharetta, Ga., provider of medical information access management and compliance services for health-care organizations and insurance payers with LLR-backed information management services provider IOD Inc. and medical record retrieval company ECS. All three deals were sourced on a proprietary basis, Mr. Holt told Dow Jones. “New Mountain may have had its best year ever in the last 12 months, returning over $2 billion of cash and acquiring some great companies in proprietary transactions,” Mr. Holt added. New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity, and credit funds with over $15 billion in aggregate capital commitments. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. New Mountain was established in 1999 by Steven B. Klinsky, who previously was co-founder of the Leverage Buyout Group of Goldman Sachs & Co. (1981-1984), where he helped execute over $3 billion of transactions. He then joined Forstmann Little and Co. as an Associate Partner (1984-1986) and a General Partner (1986-1999), helping to oversee seven private equity and debt partnerships totaling over $10 billion in capital. He received his B.A. in Economics and Political Philosophy, with honors, from the University of Michigan, his M.B.A. from Harvard Business School and his J.D., with honors, from Harvard Law School. He has been chairman or director of numerous corporations and philanthropies. Eir Partners is a New York City based investment company and strategic partnership focused exclusively on the dynamic healthcare and technology marketplace. Eir’s flexible model allows for customized collaboration to accelerate disruption, innovation and growth through direct investment and the augmentation of strategic development and acquisition sourcing. The investment model allows for direct platform investments as the sole investor or alongside strategic or other blue chip private equity institutions. Targeted stages of investment include growth equity through control buyouts. Founded in 1989, Boston-based Abry Partners is one of the most experienced and successful media, communications, business and information services focused private equity investment firms in North America. Since its founding, Abry has completed over $42.0 billion of leveraged transactions and other private equity, mezzanine or preferred equity placements, representing investments in over 450 properties. Trover Solutions, Inc. is a leading independent provider of comprehensive cost containment services and software to the private healthcare payer and property & casualty industries. Trover provides a wide range of cost containment solutions including insurance subrogation, overpayments recovery, clinical bill auditing, and litigation management. Equian is a leading payment integrity platform providing solutions to facilitate and reconcile payments in the complex environments of healthcare and property & casualty. Equian provides a wide range of solutions including pre-payment accuracy and containment and post-payment reconciliation and recovery services, generating hundreds of millions in savings for customers.]]>