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Why Verisk Analytics is putting its healthcare division up for sale

Data analytics provider Verisk Analytics has recently hired investment firm Morgan Stanley to sell its healthcare division, Verisk Health, in a deal ant...

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|Oct 15|magazine9 min read

Data analytics provider Verisk Analytics has recently hired investment firm Morgan Stanley to sell its healthcare division, Verisk Health, in a deal anticipated to be worth between $900 million and $1.08 billion.

Verisk Analytics serves HR departments, supply chain specialists, retail businesses, commercial real estate developers and government services among others. The sale could be a very attractive for merging and acquisition (M&A) opportunities for companies looking to strengthen their footprint in healthcare data analytics. 

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Meanwhile, Verisk Health is attempting to change the healthcare industry by providing data services, analytics and advanced technologies that answer some of the sector’s most complex challenges. Its population health analytics arm uses predictive science to identify opportunities for interventions as well as to judge risk levels for patients.

The company also has a payment answer arm which works on claim accuracy and fraud protection. It serves Healthcare Effectiveness Data and Information Set management, legal providers and life insurance.

The Salt Lake City-based company has a focus on reducing risk across all domains of healthcare, and also helps health plans, employers, providers and other risk-bearing entities improve its quality of healthcare delivery and cutting costs among others.

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Verisk has acquired several companies since joining the healthcare sector in 2004, and some of its customers include health plans, Medicare Advantage, Managed Medicaid, employers and life insurance carriers.

In 2011, Verisk bought Medicare and Medicaid data collector Health Risk Partners LLC for $60 million before purchasing venture capital-backed MediConnect Global for $358.6 million in 2012.

This past March, Verisk announced its acquisition of a Scottish oil, gas and energy consultancy and data analysis provider Wood Mackenzie for $2.8 billion. The purchase represented the company’s surge into the energy, chemicals and mining industries.

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In its most recent quarterly filing in July, Verisk Analytics noted that its healthcare and financial services solutions businesses led its revenue growth in the quarter. The healthcare business reported decision analytics revenues of $69 million in the three months ended June 30, as compared to $65.1 million the previous year.

Verisk is not the only large company considering divestitures of healthcare IT units. In early September, manufacturing giant 3M Co. announced it was exploring strategic alternatives for its global Health Information Systems Businesses, including spinning off, selling, or retaining and investing in the business.

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