Healthcare analytics company MedAssets Inc. is reportedly splitting into two companies as it agrees to be acquired by Pamplona Capital Management for $2.7 billion. According to Modern Healthcare, the company will be divided in two, absorbing its revenue-cycle management business and selling its purchasing and consulting business to the VHA-UHC Alliance, which has become one of the largest GPO players in healthcare.
MedAssets Inc., an Alpharetta, Georgia-based company, will be acquired by Pamplona Capital Management for $2.7 billion or $31.35 per share, in cash, Reuters reported. Based on the details of the deal, the firm will sell off the GPO and performance-improvement and Sg2 consulting businesses to the VHA-UHC Alliance, while it will merge MedAssets' remaining revenue-cycle management business with its own, called Precyse.
"Over the last year, our progress captured the attention of outside parties, and we received a number of unsolicited inquiries expressing interest in acquiring MedAssets," MedAssets CEO R. Halsey Wise said in a statement. "Our board of directors and executive leadership team conducted a thorough review of strategic alternatives and, after careful consideration, we determined an acquisition by Pamplona is the best course of action for our shareholders, customers and employees."
Known in providing hospital software, MedAssets Inc. has already a strategic partnership and share some customers with Precyse, which was purchased earlier this year from Altaris Capital Partners and NewSpring Capital, two private equity firms.
"This is a major step in delivering on our vision of expanding Precyse beyond our traditional offerings into other areas that positively impact providers' clinical and financial outcomes," Precyse Chief Executive Officer Chris Powell said in the statement, as per Bloomberg Business.
The MedAssets-Pamplona Capital transaction is expected to close in the first quarter of 2016. However, it will require the receipt of customary approvals, including certain regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is also subject to customary closing conditions, including the approval of the merger agreement by MedAssets stockholders, Market Watch noted.
"Pamplona's acquisition of MedAssets will create a national leader in the fully outsourced end-to-end revenue cycle services, technology and education market," said Jeremy Gelber, M.D., Partner at Pamplona Capital Management.
"Existing and prospective customers of the new, realigned company should expect a business that is dedicated to investing in integrating our technology both internally and with EMR software providers; improving the visualization and utility of our data; scaling our front, middle, and back-end services businesses; and, developing offerings in patient payments and value-based reimbursement," Gelber added. "MedAssets and Precyse employees will be part of a growing, focused business that prioritizes long-term value creation."
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