Pamplona Capital Management closed its previously announced acquisition of MedAssets, a healthcare performance improvement company. Pamplona paid $31.35 per share for the company, valuing the deal at about $2.7 billion. MedAssets’ stock stopped trading on the Nasdaq on Wednesday.
LONDON & NEW YORK–(BUSINESS WIRE)–Pamplona Capital Management (“Pamplona”) is pleased to announce that it has completed the acquisition of MedAssets, Inc. (NASDAQ:MDAS) (“MedAssets”), a leading healthcare performance improvement company that serves four out of every five hospitals in the United States. As a result of the transaction, MedAssets stock will stop trading at the close of business today.
“Completing the acquisition of MedAssets marks an important step in our strategy to build a national leader in the fully-outsourced end-to-end revenue cycle services, technology and education market”
Pamplona purchased MedAssets for $31.35 per share, which represents a total enterprise value of approximately $2.7 billion. The transaction was overwhelmingly approved by stockholders on January 14, with 99.8% of total votes cast in favor.
Pamplona intends to combine MedAssets’ Revenue Cycle Management (RCM) segment, which currently serves more than 2,700 hospital clients and touches more than $450 billion in gross patient revenue annually, with Precyse, a Pamplona-owned health information management (HIM) services, technology, and education company.
“Completing the acquisition of MedAssets marks an important step in our strategy to build 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. “MedAssets brings tremendous strength in its revenue cycle management capabilities which, when combined with the industry-leading health information management expertise of Precyse, will ideally position the integrated companies to meet the demands of a reimbursement environment that increasingly relies on outsourced solutions to create value.” He added, “We would like to thank the leadership of Precyse and MedAssets for helping us achieve this important closing and for driving the ongoing integration of the two businesses, as well as the employees of Precyse and MedAssets for the continued strong performance of the businesses during this transaction period.”
Separately, Pamplona has entered into an agreement with Vizient, Inc. (formerly VHA-UHC Alliance NewCo, Inc.) to divest MedAssets’ Spend and Clinical Resource Management (SCM) segment to Vizient. That transaction is expected to be completed in mid-February 2016.
About Pamplona Capital Management
Pamplona Capital Management is a London and New York based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona Capital Management, LLP manages over USD 10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations. Please visit Pamplonafunds.com for more information.
MedAssets is a healthcare performance improvement company that combines strategic market insight with rapid operational execution to help providers sustainably serve the needs of their communities. More than 4,500 hospitals and 123,000 non-acute healthcare providers rely on our solutions to reduce the total cost of care, enhance operational efficiency, align clinical delivery, and improve revenue performance across the System of CARE. For more information, please visit medassets.com.
Precyse uniquely interweaves people, technology and education to remove barriers between clinical and financial operations, enabling healthcare organizations to thrive. The company has helped nearly 5,000 healthcare organizations nationwide improve efficiency and deliver tangible outcomes for more than fifteen years. Precyse offers fully outsourced Health Information Management (HIM) Services, Medical Coding, Clinical Documentation Improvement (CDI), Medical Transcription, Cancer Registry and Oncology Data Management; an HIM Automation platform with expert workflow technologies and Natural Language Processing (NLP) that supports all inpatient and outpatient Computer Assisted Coding, and Computer Assisted CDI needs; and Precyse University™, an education solution targeted towards helping hospitals optimize coding, revenue cycle management, healthcare operations, clinical documentation, and case management practices before they hit the bottom line. Please visit precyse.com for more information.
About Vizient, Inc. (formerly VHA-UHC Alliance NewCo, Inc.)
Effective April 1, 2015, VHA, the national health care network of not-for-profit hospitals, and UHC, the alliance of the nation’s leading academic medical centers, along with Novation, their health care contracting company, combined into a single organization – Vizient. Vizient is the largest member-owned health care company in the country and is dedicated to leading health care innovation, creating knowledge and fostering collaboration to help our members thrive. The company serves more than 5,200 health system members and affiliates as well as 167,000 non-acute health care customers. Members range from independent, community-based health care organizations to large, integrated systems and academic medical centers, and it represents more than $60 billion in annual purchasing volume. Headquarters are in Irving, Texas, with locations in Chicago and other cities across the United States.