BOSTON, April 28, 2004 – Covington Associates announced today it acted as the exclusive financial advisor and provided a fairness opinion to Landacorp, Inc. (Nasdaq: LCOR) in its previously announced sale to Louisville, Ky.-based SHPS Holdings, Inc., the majority shareholder of SHPS, Inc., a leading provider of integrated health management solutions for employers, health plans and government agencies. The cash merger is valued at approximately $56 million.
Based in Atlanta, Landacorp provides technology-driven solutions for health plans and healthcare delivery organizations including its industry leading Managing for Tomorrowâ disease management programs for people with asthma, heart disease, diabetes and other chronic health conditions. These “light touch” programs can help improve clinical outcomes, while reducing healthcare costs through unique, personalized information and materials that provide participants with the knowledge and skills they need to understand and self-manage their conditions.
Ben Dunn, a managing director at Covington Associates who advised Landacorp on the transaction said, “We worked with Landacorp to evaluate potential combinations and craft the highest quality transaction possible. Landacorp’s unique Managing for Tomorrow programs complement SHPS’ own extensive nurse care management services, allowing SHPS to provide a full continuum of services for disease management – a crucial capability in today’s consolidating disease management sector.”
Gene Miller, president & CEO of Landacorp said, “Covington Associates worked closely with Landacorp to find the right partner and business structure for our comprehensive suite of integrated, population health management solutions. As part of SHPS, we will provide the ‘one-stop-shopping’ that HMOs, insurers and employers are seeking to ensure not only the highest quality of care, but also strict adherence to cost controls. More importantly, we will be giving patients the tools to improve their conditions and live healthier lives.”
About Covington Associates
Covington Associates is a specialty investment banking firm offering financial advisory services in the areas of mergers, acquisitions and capital raising. For more than a decade, Covington Associates’ senior advisors have been providing a superior level of service to middle-market companies in the technology, healthcare and industrial/consumer sectors. Covington Associates has completed transactions ranging in value from $5 million to more than $1 billion for both publicly-traded and privately-held companies across the U.S. and abroad. For more information, visit the company’s web site at www.covingtonassociates.com.
About SHPS Holdings, Inc. and SHPS, Inc.
SHPS Holdings, Inc. is the majority shareholder of SHPS, Inc., an integrated health management provider headquartered in Louisville, Ky. With services that include care management, benefit plan administration, insurance carrier management and spending account administration, SHPS provides corporations and consumers with a single, comprehensive source of health management decision guidance. The company serves more than 700 organizations, including more than 65 Fortune 500 companies, and employs more than 2,240 clinical professionals, employee benefits specialists, and information technology experts in facilities across the United States. SHPS is a Welsh, Carson, Anderson & Stowe company. WCAS is a private equity firm based in New York. For more information, visit www.shps.net and www.welshcarson.com.