PE firm Veritas gets $850m for GE value-based healthcare biz acquisition

Private equity firm Veritas Capital has arranged for $850 million in leveraged loans to back its $1.05 billion acquisition of GE Healthcare’s (NYSE:GE) value-based healthcare business, according to a Reuters report.

The newly found financing includes a $75 million five-year revolving credit facility, a $600 million seven-year secured term loan with a first priority claim and a $175 million eight-year secured term loan with a second priority claim, according to the report.

Goldman Sachs is slated to lead the senior term loan along with Barclays and DeutscheBank, Reuters reports, while the junior term loan will be privately placed with PSP Investments, which is also participating in the revolving credit loan.

In the deal, which was announced earlier this month, Veritas will acquire the enterprise financial management, ambulatory care management and workforce management divisions that make up GE’s value-based healthcare business.

The acquisition follows investments in Truven Health Analytics and Verscend Technologies by Veritas, GE said. Both companies plan to work together to facilitate the transition of the businesses into a standalone company.

The deal is expected to close during the third quarter of this year, the companies said.

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