Investment funds to take healthcare tech company R1 RCM private in nearly $9B deal
abcnews.go.comThe healthcare tech company R1 RCM will be acquired for $9 billion and taken private by investment funds
The healthcare tech company R1 RCM will be acquired for $9 billion and taken private by investment funds.
The Utah company's stock jumped Thursday morning after it said investment funds tied to TowerBrook Capital Partners and Clayton, Dubilier & Rice will pay $14.30 per share in cash for the company.
TowerBrook already has a 36% stake in the company.
The deal is valued at around $8.9 billion. The per-share price represents a roughly 29% premium to where the stock traded in late February, before New Mountain Capital disclosed an initial non-binding deal proposal.
R1 RCM Inc. works with more than 3,700 hospitals and 30,000 doctors to provide billing and revenue collection services. Founded in 2003, it employs about 30,000 people in the United States, India and the Philippines.
The deal has already been approved by a special R1 board of directors committee formed earlier this year to look at strategic alternatives, the company said.
The acquisition still must be approved by shareholders and regulators. The company expects the deal to close by the end of the year.
Shares of the Murray, Utah, company climbed almost 9%, or $1.14, to $14.02 at the opening bell.
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