NGN Capital Joins With The Carlyle Group To Complete The Acquisition of MultiPlan, Nation’s Largest Independent PPO

NGN Capital teamed up with The Carlyle Group to acquire MultiPlan, the largest independent PPO in America. The transaction closed April 12, 2006. Financial terms were not disclosed.

MultiPlan is the nation’s oldest and largest independent preferred provider organization (PPO) network offering nationwide access to more than 4,200 hospitals, 100,000 ancillary care facilities and 450,000 physicians and specialists. The company’s 2,000 clients include large and mid-sized insurers, third-party administrators, self-funded plans, HMOs and other entities that pay claims on behalf of health plans.

Mark Tabak, MultiPlan Chief Executive Officer, said, “The healthcare system is in the midst of sweeping change, and in our 35 years we’ve developed not only a comprehensive suite of healthcare cost management services, but also a transaction and information management engine with the sophistication to embrace the scope, speed and flexibility demands of the country’s largest insurers. In Carlyle we have the strategic and financial backing to propel our value even further in support of our clients’ and providers’ business and growth objectives.”

Kenneth S. Abramowitz, Managing General Partner of NGN Capital, said, “We are pleased to participate with The Carlyle Group in our first corporate buyout. MultiPlan is a market leader in PPO wrap services, and is led by a strong, well-experienced management team. We look forward to playing a constructive role on the board of directors in helping to guide MultiPlan through its internal growth and acquisition opportunities.” Mr. Abramowitz is the designated board member for NGN Capital.

Bob Dahl, Managing Director and Co-head of Carlyle’s Healthcare Group, said, “Steadily rising healthcare costs have sparked a new wave of innovation and consolidation in the managed care industry. We see MultiPlan’s independent, national network and related technology as the critical building blocks in new solutions that will emerge to support this changing market. We look forward to working with Mark, his management team, and NGN as we take MultiPlan to the next level of growth and success.”
PPOs, which are the most common type of health plan used today, offer a provider network and range of value-added services to help employers and other health plan sponsors manage the cost of medical claims. MultiPlan offers a full range of medical cost management solutions to a blue-ribbon list of clients, including the national PPO network, specialty networks, negotiation services and electronic claim routing technology. The company’s top 10 clients together deliver health coverage to more than 70 million Americans.

About MultiPlan
For 35 years, MultiPlan has helped healthcare payers and providers partner together to combat rising healthcare costs. MultiPlan serves as a single gateway to a host of primary, complementary and out-of-network strategies for managing the financial risks associated with healthcare claims. Clients include large and mid-sized insurers, third-party administrators, self-funded plans, HMOs and other entities that pay claims on behalf of health plans. For more information, visit www.multiplan.com.

About NGN Capital
NGN Capital is a global healthcare venture capital investment firm with offices in New York, NY, Heidelberg, Germany, and Greenwich, CT. NGN has investment capabilities across a broad spectrum of healthcare and biotechnology segments, including drug products, medical devices, and healthcare services, with an emphasis on later-stage opportunities.

About The Carlyle Group
The Carlyle Group is one of the world’s largest private equity firms, with more than $39 billion under management. With 39 funds across four investment disciplines (buyouts, venture & growth capital, real estate and leveraged finance), Carlyle combines global vision with local insight, relying on a top-flight team of more than 345 investment professionals operating out of offices in 14 countries to uncover superior opportunities in North America, Europe, Asia and Australia.

More information on NGN can be found at www.ngncapital.com
Contact: John R. Costantino or Ken Abramowitz
+1 212-972-0077
jcostantino@ngncapital.com
kabramowitz@ngncapital.com

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