Zelis Healthcare Corp. will acquire fellow healthcare technology company RedCard Systems LLC from private equity firm PCP Managers LP.
Financial terms of the deal were not disclosed in an Aug. 1 press release.
Zelis Healthcare, headquartered in Bedminster, N.J., provides integrated healthcare cost management services and payments solutions. St. Louis-based RedCard Systems provides a healthcare communications platform for e-payments and health claims. The combined company will serve over 700 payers, the companies said in the press release.
Zelis CEO Douglas Klinger will be CEO of the merged company. RedCard Systems CEO Joseph DiMartini and President Eric Schaefer will fill key senior executive roles, according to the release.
PCP Managers, also known as Parthenon Capital, and Bain Capital LP are supporting the transaction.
Following the deal announcement, S&P Global Ratings placed all of its ratings on Zelis Healthcare Corp., including its B+ long-term issuer credit rating, on CreditWatch Negative.
"Although the merger is likely to enhance the combined organization's competitive position moderately, we believe a combination of heightened financial and operational risk could weaken the company's credit profile," S&P Global Ratings said on Aug. 2.
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