The Carlyle Group has dropped its long-planned investment in healthcare analytics company Cotiviti, despite having lined up $5.5 billion in debt and a $1 billion preferred stock investment for the deal, according to a report by the Financial Times.
Carlyle had reportedly sought to lower its purchase price late in the process, according to unnamed sources familiar with the matter. US private equity firm Veritas Capital – which owns Cotiviti – had hoped to sell half of the business for around $15 billion valuation.
The abandoned takeover is a set-back for the long-running private equity firm as it aims to raise cash for buyouts amid upheaval in its top ranks. Carlyle is looking to stabilise under new CEO Harvey Schwartz, who was hired in February to lead the private equity group which has nearly $400 billion in assets.
Last year Carlyle was forced to seek an extension with investors for a new $22 billion buyout fund, the FT noted.