WCAS books 3.1x on Matrix Medical Network

The company will sell to Providence Service Corporation for $400 million

Welsh, Carson, Anderson and Stowe has exited its investment in Matrix Medical Network for $400 million. Matrix will become part of Providence Service Corporation, an Arizona-based provider of social services in the US.  The deal includes $360 million in cash and shares of Providence stock. 

WCAS booked a 3.1x multiple and 46 percent IRR for a total gain of $213 million on the exit.

WCAS acquired Matrix Medical in September 2011. Matrix is a provider of prospective medical assessments to Medicare Advantage plans in the US. The company utilizes a captive provider network of over 600 nurse practitioners to provide onsite medical evaluations and document member diagnoses in 33 states.

Earlier this month, WCAS sold another portfolio company – GlobalCollect – for €820 million to Ingenico Group, PEI reported at the time. WCAS has also made a number of other exits so far this year including the sale of Solstas Lab Partners and Peak 10. The firm sold Peak 10 to GI Partners for $730 million in June.

WCAS has also completed the initial public offerings of Paycom Software, Inc. (NYSE: PAYC), and K2M Group Holdings, Inc. (Nasdaq: KTWO).

The firm is currently in market for its Welsh Carson Anderson & Stowe XII vehicle which has a $3 billion target according to Private Equity International’s research and analytics division.