Vestar Capital Partners acquires Quest Analytics

Vestar Capital Partners has acquired Quest Analytics, a specialist in health plan provider network management software and services. Terms of the investment have not been disclosed.

Quest Analytics, based in Appleton, WI, was co-founded in 2003 by David H Hill and John P Weis. Both will remain active in the business and retain a substantial minority ownership stake in the company.
 
Health plan provider network access, adequacy, and accuracy standards vary by state and type of beneficiary. As health plan networks evolve to keep healthcare affordable, Quest Analytics provides critically important software and cloud-based solutions for both health plans and the regulators who monitor their performance.
 
“Quest’s products and services are critical competitive tools for health plan networks in the current volatile and uncertain healthcare environment,” says Roger C Holstein, Managing Director at Vestar Capital Partners. “As healthcare costs continue to rise, health plans are narrowing the size of provider networks in order to keep premiums affordable. Now more than ever, health plans look to Quest to help them design, contract, and monitor the access, adequacy, and accuracy of their networks.”
 
“Partnering with Vestar, Quest will not only have additional capital to invest and grow our business but also access to Vestar’s data analytics and sector expertise that will enable us to take full advantage of the significant opportunities available to expand our fast-growing business,” says Weis, CEO of Quest Analytics.
 
Richard Barasch, former CEO of Universal American (a leading Medicare Advantage plan recently acquired by WellCare Health Plans, Inc) and a senior advisor to Vestar, was actively involved in the investment and will join the Quest board.
 
Kirkland & Ellis LLP served as legal counsel to Vestar. Brown Gibbons Lang & Company acted as financial advisor to Quest Analytics and Foley & Lardner LLP provided transaction counsel.