TowerBrook Capital Partners, L.P. agreed to sell portfolio company The Broadlane Group Inc. to MedAssets Inc. for $850 million in cash. Broadlane providescost management solutions to the U.S. health care industry. The transaction is expected to close within 60 to 90 days. TowerBrook acquired Broadlane in August 2008.
TowerBrook Capital Partners, L.P. (“TowerBrook”), the New York and London-based private equity firm, announced today that it has signed a definitive agreement to sell its portfolio company, The Broadlane Group, Inc. (“Broadlane”), to MedAssets, Inc. (NASDAQ: MDAS, “MedAssets”). Broadlane is a leading provider of cost management solutions to the U.S. healthcare industry.
Under the terms of the agreement, MedAssets will purchase Broadlane for total consideration of $850 million in cash, including $725 million to be paid at closing and $125 million to be paid in January 2012. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to be completed within 60 to 90 days.
Since TowerBrook`s acquisition of Broadlane in August 2008, Broadlane has significantly transformed itself into the leading provider of total cost management solutions to healthcare providers. Under TowerBrook`s ownership, Broadlane has increased the depth of its management team, expanded and diversified its product and service offerings, and completed three complementary acquisitions in order to offer a broader set of products and services to its healthcare provider clients.
Commenting on the transaction, Ian Sacks, Managing Director, TowerBrook, said: “We are delighted to announce that we have reached an agreement on the sale of Broadlane. We have worked very closely with the Broadlane management team over the course of our investment to re-position the business in order to fulfill the company`s tremendous growth potential and the needs of healthcare providers and suppliers. We believe the combination with MedAssets will enable Broadlane to continue to bring value to the broader marketplace.”
Patrick Ryan, Chairman and Chief Executive Officer of Broadlane, who is expected to join the MedAssets board of directors upon completion of the transaction, added, “Our partnership with TowerBrook has allowed us to invest, innovate and diversify in order to continue to enable Broadlane to thrive in the ever-evolving healthcare landscape. This is a very exciting time for our company, employees and business partners as we look at the tremendous strategic opportunities ahead for our two great companies. I look forward to working with MedAssets to continue to grow and develop our business for the benefit of our clients.”
About TowerBrook Capital Partners
TowerBrook Capital Partners L.P. is an investment management firm with approximately $5 billion of capital under management. With offices in New York, London and San Francisco, the firm focuses on making investments in North American and European companies. TowerBrook primarily pursues control-oriented private equity investments in large and middle market companies, partnering with highly capable management teams, often in situations characterized by complexity. For more information, visit www.towerbrook.com.
Broadlane is dedicated to making quality healthcare affordable. Delivering supply chain management, strategic sourcing of supplies and services, capital equipment lifecycle management, clinical and lean process consulting, and clinical workforce optimization, the company serves more than 1,100 acute care hospitals and 50,000 non-acute care facilities across the United States. Broadlane`s comprehensive and customizable solutions empower healthcare providers of all sizes to achieve dramatic operating margin improvements. For more information, visit www.Broadlane.com.
For TowerBrook Capital Partners, L.P.
Gemma Hart / Katie Crallé, 212-333-3810