The Carlyle Group Acquires MedRisk
Partnership Will Foster Growth for Physical Medicine Specialty Benefit Manager
New York, NY – Global alternative asset manager The Carlyle Group (NASDAQ: CG) today announced that it has agreed to acquire a majority stake in MedRisk, a King of Prussia, Pennsylvania-based provider of physical medicine solutions to the workers’ compensation industry. Current investor TA Associates will exit as part of the transaction and MedRisk’s founder, Shelley Boyce, along with CEO, Mike Ryan, and other members of MedRisk management, will retain a minority equity stake. The transaction is subject to customary regulatory conditions and is expected to close before the end of 2017. Financial terms were not disclosed.
Stephen H. Wise, Managing Director and Global Head of Healthcare for The Carlyle Group, said, “Specialty benefit managers are on the right side of the cost curve, offering a strong value proposition to payors, providers, and patients. Shelley, Mike, and the rest of the management team have built MedRisk into a world class organization within this fast-growing segment of healthcare services. The Company has distinguished itself by constantly seeking innovative ways to provide patients quicker access to higher quality, lower cost care from a national network of accredited providers. We look forward to working closely with the MedRisk team to continue to grow this industry-leading franchise.”
MedRisk Executive Chair and founder Shelley Boyce said, “Partnering with Carlyle, given their extensive network and significant financial resources, will fuel our next stage of growth. Carlyle has a deep understanding of the healthcare sector and a strong record of helping to build market-leading companies, while maintaining the highest levels of quality and patient support.”
“We’re excited to welcome Carlyle as a new partner that is well aligned with our mission and vision for the Company. This partnership enables MedRisk to strengthen our commitment to existing customers while pursuing greater scale in our operations,” said CEO Mike Ryan.
Established in 1994, MedRisk has a national network of physical medicine providers in 49 states and Washington, D.C. MedRisk currently works with 17 of the top 20 workers’ compensation insurance carriers and 8 of the top 10 workers’ compensation third party administrators. MedRisk delivers high quality care to injured workers while operating a model that is also favorable to both payors and healthcare providers. The alignment of these key stakeholders drives a sustainable competitive advantage and positions MedRisk for future growth in the physical medicine market.
Equity for the transaction will come from Carlyle Partners VI, a $13 billion fund that focuses on buyout transactions in the U.S. Jefferies LLC served as financial advisor to Carlyle, with Debevoise & Plimpton LLP serving as legal advisor. Jefferies Finance LLC, Antares Holdings, and PSP Investments Credit USA LLC have agreed to provide debt financing for the transaction.
Centerview Partners LLC served as financial advisor to MedRisk, with Morgan, Lewis & Bockius LLP serving as legal advisor. Goodwin Procter LLP acted as legal advisor for TA Associates.
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The Carlyle Group
Based in King of Prussia, Pennsylvania, MedRisk is the largest managed care organization dedicated to the physical rehabilitation of injured workers. One of the Inc. 5,000 fastest growing privately held companies for 11 consecutive years, MedRisk counts over 116,000 providers in its network and serves almost 500,000 injured workers every year. It holds direct contracts with more than 80 percent of the nation’s top workers’ compensation insurers and third-party administrators. MedRisk, which has successfully completed a SSAE 16 Type II examination, ensures high quality care and delivers outstanding customer service. To that end, all customer service professionals, healthcare advocates and physical therapists are based in the U.S. www.medrisknet.com
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $174 billion of assets under management across 306 investment vehicles as of September 30, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.
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