Mumbai: Global buyout funds Blackstone, Hillhouse Funding, TPG Capital, and Basic Atlantic have submitted non-binding bids to accumulate AGS Health, valuing the healthcare IT providers agency at round $1 billion, stated a number of individuals conscious of the event.
EQT Companions, the Swedish fund that owns AGS Health, has employed JP Morgan and Financial institution of America to handle the sale course of which will probably be launched by early subsequent 12 months, ET first reported in September 2024. EQT acquired AGS Health in 2019 for $320 million.
Spokespeople at EQT, Blackstone, and Basic Atlantic declined to remark. Hillhouse and TPG Capital didn’t reply to e mail queries.
Bloomberg was the primary to report final 12 months about EQT’s plans to promote AGS Health.
AGS Health is anticipated to submit $60 million in Ebitda this fiscal 12 months, and annualised income of about $150 million. The corporate offers income cycle administration (RCM) providers to healthcare suppliers and distributors within the US, with 12,000 staff throughout a number of places of work in India, Manila, and the US. AGS Health serves over 150 clients, together with outstanding US hospitals and well being programs.
Its shoppers embrace laboratory testing providers firm Aegis Sciences Company, American Habit Facilities, ApolloMD, Auburn Group Hospital, DocuCare LLC, OhioHealth, Richmond College Medical Heart and Vanderbilt College Medical Heart.
EQT has a large portfolio of IT/ITES firms with a powerful presence in India. Final 12 months, it acquired GeBBS, a competitor of AGS Healthcare, from ChrysCapital for $860 million. With this acquisition, EQT at the moment owns 4 healthcare IT providers firms in India – CitiusTech, AGS Health, Sagility and GeBBS.
TPG Capital has been an aggressive investor within the healthcare IT area globally. Its present portfolio contains Nextech, Lyric, WellSky, and IQVIA.
Blackstone has a presence within the healthcare IT area via its acquisition of HealthEdge.
The sale means of AGS Health comes amid rising curiosity in healthcare BPOs from non-public fairness companies.
In the same deal, half-a-dozen buyout funds together with Hillhouse Funding, Blackstone and TPG had been engaged in a race to accumulate Texas-headquartered healthcare BPO Entry Healthcare final 12 months.
Ultimately, US-primarily based funding agency New Mountain Capital, LLC, trumped its rivals to accumulate a major majority stake in Anurag Jain-owned Entry Healthcare at a valuation of about $2 billion two months in the past.
Different offers embrace Ontario Academics’ Pension Plan’s acquisition of a forty five per cent stake in US-primarily based healthcare BPO Omega Healthcare, valuing it at $1.8 billion, TA Associates’ buyout of a major majority stake in Bengaluru and US-primarily based RCM providers supplier Vee Healthtek for $250 million.
In keeping with a BCC Analysis research, the worldwide healthcare enterprise course of outsourcing market is estimated to develop to $259.5 billion by 2028 from $151.9 billion in 2022, at a compound annual progress fee of 9.7 per cent.
Steady rise in healthcare prices has fuelled the urgency to search out efficient price-discount methods. Organisations are more and more turning to BPO to streamline processes, reduce bills, and navigate the advanced panorama of healthcare expenditures, it stated.
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