(Reuters) – Veritas Capital ended talks with Carlyle Group Inc to buy a 50% stake in private healthcare technology firm Cotiviti Inc on valuation grounds, a source familiar with the matter said.
Carlyle wasn’t ready to stick to the valuation that had previously been discussed in the current market conditions and submitted a revised bid in recent days, which Veritas rejected, the source said.
In February, Reuters reported that Carlyle was in talks to buy a portion of Cotiviti from Veritas Capital at a valuation of around $15 billion.
Cotiviti, which went public in 2016, was acquired by Veritas in 2018 in a take-private deal valued at $4.9 billion, as the private equity firm looked to expand its Verscend healthcare IT business.
Carlyle declined to comment. Veritas and Cotiviti did not immediately respond to Reuters requests for comments.
(Reporting by David Carnevali in New York and Nilutpal Timsina in Bengaluru; Editing by Subhranshu Sahu)
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