Navigant Acquires Cymetrix – Largest Deal for Navigant in Past Decade

Earlier this month, Navigant announced that it had acquired Cymetrix, a private equity-backed revenue cycle management firm specializing in providing outsourcing services to hospital and healthcare networks. The acquisition, which is the largest deal Navigant has done in the past decade, allows Navigant to further expand its business platform beyond consulting services to incorporate more data analytics products, technology-enabled solutions and operations outsourcing. Cymetrix was backed by Riordan, Lewis & Haden, a private equity firm which invested in the business in 2005.

Navigant paid approximately $100M total with $75 million in cash at closing and up to an additional $25 million to the selling stockholders based on the achievement of certain post-closing performance targets. While no valuation multiples have been disclosed, we estimate the deal at 1.5x revenue.

As we have stated several times over the last year, we continue to see strong M&A activity across the healthcare consulting, outsourcing and technology spectrum. Just a couple months ago, we advised Simpler Consulting, an operational consulting firm, in its sale to Truven Health Analytics. Our thesis on convergence in the space is certainly playing out as we expected and we do not expect to see it let up any time soon.