MedAssets sold to PE firm, will merge with Precyse

'Will create a national leader in the fully outsourced end-to-end revenue cycle services, technology and education market'
By Henry Powderly
09:27 AM
Wall Street

In a $2.7 billion deal, MedAssets, maker of revenue cycle and performance improvement tools, will be sold to Pamplona Capital, which will sell off one half of the company while merging the other with its Precyse subsidiary.

According to Pamplona, the company would combine the RCM business for MedAssets with Precyse, a health information management company that Pamplona bought in July. The two companies already have run under a partnership agreement.

[See also: MedAssets IPO stirs competition]

MedAssets has 2,700 hospital clients for its revenue cycle products, managing more than $450 billion in patient revenue annually.

The deal also ends MedAssets' interests in group purchasing and consulting. Pamplona said the company's Spend and Clinical Resource Management, which runs the group purchasing organization, would be sold to the VHA-UHC Alliance once the deal closes.

Pamplona said the deal would create a single, end-to-end system for managing health information and revenue cycle through the MedAssets-Precyse merger.

[See also: MedAssets introduces RAC solution for hospitals, health systems]

"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 a Partner at Pamplona, in the announcement.

"With the added transactional steps planned by Pamplona, we expect our customers, suppliers and employees will have an extraordinary opportunity to benefit from a significant market combination that will create the leading supply chain procurement and cost management partner as well as a prominent, end-to-end revenue cycle technology and services business in the healthcare industry," said MedAssets CEO R. Halsey Wise.

Georgia-based MedAssets pulled in more than $720 million in revenue in 2014 and posted a 20 million loss for the year.

Shares of the company jumped more than 30 percent Monday after the deal was announced.

This story first appeared on Healthcare Finance.

Twitter: @HenryPowderly


[See also: Precyse Solutions plans to grow with capital infusion]