Sidley Austin advised Sixth Street and Goldman Sachs on the deal while Goodwin Procter LLP represented Datavant. Ropes & Gray represented New Mountain Capital and its portfolio company Ciox Health in the transaction.
Datavant, the leader in helping healthcare organizations securely connect their data, and Ciox Health, the leader in clinical data exchange, announced that they have signed a definitive agreement to merge the two companies in a transaction valued at $7.0 billion. The combined entity, to be named Datavant, will be the nation’s largest health data ecosystem, enabling patients, providers, payers, health data analytics companies, patient-facing applications, government agencies, and life science companies to securely exchange their patient-level data.
The combined company is focused on improving patient outcomes and reducing costs by removing impediments to the secure exchange of health data. Datavant will offer the ability to access, exchange, and connect data among the thousands of organizations in its ecosystem for use cases ranging from better clinical care and value-based payments, to health analytics and medical research.
The transaction is supported by an existing investor group of private equity, venture capital and strategic investors led by New Mountain Capital, Roivant Sciences, Transformation Capital, Merck Global Health Innovation Fund, Labcorp, Cigna Ventures, Johnson & Johnson Innovation – JJDC, Inc., & Flex Capital. It also includes a significant new investment by Sixth Street with participation from Goldman Sachs Asset Management’s West Street Strategic Solutions fund. Sixth Street will join the new company’s Board of Directors at the completion of the transaction.
Upon closing, the new company will be led by current Ciox Chief Executive Officer Pete McCabe as CEO, and current Datavant CEO Travis May will assume the role of President and join the Board of Directors.
The merger is subject to regulatory approvals and is expected to close in the third quarter of 2021. Deutsche Bank, Goldman Sachs and Triple Tree served as the financial advisors to New Mountain and Ciox.
The Sidley team was led by Alex Temel (Picture) and Dan Rawner (Private Equity), and included Kourosh Azin (Private Equity); Clay Northouse and Stephen McInerney (Privacy); Catherine Starks, Kim Schroer, Melissa Wu, Erika Maley, Gabriel Schonfeld, Jaime Jones, and Jeffrey Senger (Healthcare); Kelly Dybala, Kaitlin Schock, and Quan Lu (Global Finance); Rachel Kleinberg (Tax); Jen Coplan and Kyle Barnett (Technology and IP Transactions); Benjamin Nager (FINRA); Michael Mann (Compliance); Stacy Crosnicker and Sarah Recktenwald (Employee Benefits); Howard Stanislawski (Government Contracts); and James Mendenhall (CFIUS).
The Goodwin team was led by Alessandra Simons, Jean Lee, John Corrigan, Rachel Totten, and Julia Chang (M&A); and included Jon Novotny (corporate); Kelsey Lemaster and Kyle Pine (Tax); Andy Barton, Cisco Palao-Ricketts, Jeremy Slotnick, Regina Couto, and Michael Whittington (ERISA & Executive Compensation);Paul Jin and Ortal Ben Aharon (Antitrust); James Riley, Kevin Liu, and Zachary Feldman (Intellectual Property); Jacob Osborn, Amy Josselyn, and Axel Urie (Global Trade); Jacqueline Klosek and Alex Intile (Data, Privacy & Cybersecurity); Koray Bulut and Seth Burns (Employment); and Kris Ring and Edward Amer (Debt & Equity Finance).
The Ropes & Gray team that represented New Mountain Capital and Ciox Health was led by private equity partners Andrew Silver, John Sorkin and Garrett Charon, and included private equity partner Carl Marcellino (all of New York), health care partner Jennifer Romig (Chicago), employment, executive compensation & benefits partner Danna Kivell, strategic transactions partner Rachel Phillips, finance partner Stefanie Birkmann, tax partner Adam Greenwood, IP transactions partner Violetta Kokolus, and private equity counsel Andrea Bidegaray Stephen (all of New York), litigation & enforcement partners Ama Adams and Samer Musallam (both of Washington D.C.) and David Hennes (New York), tax counsel Alyssa Kollmeyer, debt finance associate Dan Coyne, litigation & enforcement counsel Steven Kaye and Deidre Johnson, and employment, executive compensation & benefits counsel Stephanie Bruce (all of Boston).
Involved fees earner: Edward Amer – Goodwin Procter; Andy Barton – Goodwin Procter; Ortal Ben Aharon – Goodwin Procter; Koray Bulut – Goodwin Procter; Seth Burns – Goodwin Procter; Julia Chang – Goodwin Procter; John Corrigan – Goodwin Procter; Regina Couto – Goodwin Procter; Zachary Feldman – Goodwin Procter; Alex Intile – Goodwin Procter; Paul Jin – Goodwin Procter; Amy Josselyn – Goodwin Procter; Jacqueline Klosek – Goodwin Procter; Kyle Pine – Goodwin Procter; Jean Lee – Goodwin Procter; Kelsey Lemaster – Goodwin Procter; Kevin Liu – Goodwin Procter; Jon Novotny – Goodwin Procter; Jacob Osborn – Goodwin Procter; Francisco Palao-Ricketts – Goodwin Procter; James Riley – Goodwin Procter; Kristopher Ring – Goodwin Procter; Alessandra Simons – Goodwin Procter; Jeremy Slotnick – Goodwin Procter; Michael Whittington – Goodwin Procter; Ama Adams – Ropes & Gray; Andrea Bidegaray Stephen – Ropes & Gray; Stefanie Birkmann – Ropes & Gray; Stephanie Bruce – Ropes & Gray; Garrett Charon – Ropes & Gray; Daniel Coyne – Ropes & Gray; Adam Greenwood – Ropes & Gray; David Hennes – Ropes & Gray; Deidre Johnson – Ropes & Gray; Steven Kaye – Ropes & Gray; Danna Kivell – Ropes & Gray; Violetta Kokolus – Ropes & Gray; Alyssa Kollmeyer – Ropes & Gray; Carl Marcellino – Ropes & Gray; Samer Musallam – Ropes & Gray; Rachel Phillips – Ropes & Gray; Jennifer Romig – Ropes & Gray; Andrew Silver – Ropes & Gray; John Sorkin – Ropes & Gray; Kourosh Azin – Sidley Austin LLP; Kyle Barnett – Sidley Austin LLP; Jennifer Coplan – Sidley Austin LLP; Stacy Crosnicker – Sidley Austin LLP; Kelly Dybala – Sidley Austin LLP; Jaime Jones – Sidley Austin LLP; Rachel D. Kleinberg – Sidley Austin LLP; Quan Lu – Sidley Austin LLP; Erika Maley – Sidley Austin LLP; Michael Mann – Sidley Austin LLP; Stephen McInerney – Sidley Austin LLP; James Mendenhall – Sidley Austin LLP; Benjamin Nager – Sidley Austin LLP; Clayton Northouse – Sidley Austin LLP; Daniel Rawner – Sidley Austin LLP; Sarah Recktenwald – Sidley Austin LLP; Kaitlin Schock – Sidley Austin LLP; Gabe Schonfeld – Sidley Austin LLP; Kim Schroer – Sidley Austin LLP; Jeffrey Senger – Sidley Austin LLP; Howard Stanislawski – Sidley Austin LLP; Catherine Starks – Sidley Austin LLP; Alexander Temel – Sidley Austin LLP; Melissa Wu – Sidley Austin LLP;