Prodigy Health Group announces $110 million investment from One Equity Partners
New York, NY, June 18, 2008 – Prodigy Health Group, Inc., a New York-based health services holding company, announced today that One Equity Partners has invested $110 million in support of the company’s continued rapid growth.
“We are delighted to welcome One Equity Partners as an investor,” said Elliot Cooperstone, CEO of Prodigy Health Group. “They are enthusiastic supporters of our plan to continue investing in the capabilities and technologies necessary to help our clients create sustainable cost control strategies for their benefits plans. They are also proponents of continuing the acquisition program that has helped us become the largest independent manager of health benefits plans and medical management programs in the country. We look forward to working with OEP who now joins CI Capital as partners in pursuing current and new opportunities for Prodigy Health Group.”
“Prodigy’s approach to healthcare benefits administration and medical management has proven extremely effective at controlling benefits costs for its clients. We believe that offering medical management alternatives in addition to benefits administration will be a key tool for employers as they search for ways to contain healthcare benefit costs, which on average have grown at over 9% since 2000. Prodigy has also proven itself to be the most capable acquirer of TPAs and medical management companies in a sector that continues to consolidate,” said Gregory Belinfanti, Managing Director of One Equity Partners. “We are thrilled to be partnering with Elliot and his team.”
CI Capital Partners LLC acquired Meritain Health (formerly North American Administrators, Inc.), a Buffalo, New York-based third party administrator of health care plans in December of 2004 and subsequently formed Prodigy Health Group, a health services holding company.
“The company has done an outstanding job of using its size to generate cost saving opportunities for clients while still delivering a high level of service and flexibility that is not commonly available to middle market companies,” said Tim Hall, Principal at CI Capital Partners. “Having met our goals for our initial investment in Prodigy, we look forward to working with OEP on the next phase of the company's growth, retaining a significant equity stake in the business as we participate in its continued success.”
Prodigy currently conducts operations through four units: Meritain Health, Inc., the nation's largest independent provider of services for self-funded health plans; American Health Holding Inc., a national medical management firm providing services through a highly qualified staff of physicians and registered nurses; Niagara Re, a full service stop loss MGU for Standard Security Life Insurance Company of New York and Fairmont Specialty Group; and Scrip World, LLC a pharmacy benefit manager delivering customized, flexible plan designs featuring innovative methods of cost control with a nationwide network of over 55,000 pharmacies.
Advising Prodigy and CI on the transaction were Paul, Weiss, Rifkind, Wharton & Garrison LLP and Goldman Sachs. Dechert LLP advised One Equity Partners.
About Prodigy Health Group
Prodigy Health Group is a health services holding company. Prodigy Health Group operating companies provide benefits management, integrated health management, provider network services and insurance services to self-funded employers, managed care companies and insurers. Prodigy Health companies serve over 3.9 million members across all industry sectors and Prodigy Health Group is continuing to pursue an aggressive growth strategy through synergistic health services acquisitions and organic growth. http://www.prodigyhealthgroup.com
About One Equity Partners
Established in 2001, One Equity Partners manages $8 billion of investments and commitments for JPMorgan Chase & Co. in direct private equity transactions. Partnering with management, One Equity Partners invests in transactions that initiate strategic and operational changes in businesses to create long-term value. One Equity Partners' investment professionals are located across North America, Europe and Asia, with offices in New York, Chicago, Menlo Park, Frankfurt and Hong Kong. Over recent years, One Equity Partners has invested approximately $3.5 billion to acquire over thirty companies in a variety of industries including defense, chemicals, healthcare, technology and manufacturing. Visit www.oneequity.com for more information.
About CI Capital Partners
CI Capital Partners, formerly known as Caxton-Iseman Capital, is a New York-based private equity firm. In addition to Prodigy Health Group, CI Capital Partners’ portfolio companies include Valley National Gases, a leading distributor of industrial gases and propane; Ply Gem Industries, Inc., the largest North American manufacturer of residential siding, and fifth largest U.S. window manufacturer; KIK Custom Products, Inc., the largest North American contract manufacturer of branded and retailer-branded consumer products; Electrograph Systems, Inc., a leading national distributor of display technology solutions; American Residential Services, LLC, a leading provider of HVAC and plumbing services; Conney Safety Products, LLC a full-service distributor of safety products; and CoVant, a federal IT services company led by the former executives and board of directors of Anteon Corporation. Visit www.caxton-iseman.com for more information.
For One Equity Partners
Global Media Relations
JPMorgan Chase & Co.
For CI Capital Partners and Prodigy Health Group
Kekst and Company