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.
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The rally in the stock was on the back of reports that private equity fund manager Pamplona Capital Management offered about $2.7 billion to buy the healthcare performance improvement company which is being seen as a huge positive by traders and investors on the street. 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.
Alpharetta, Georgia-based MedAssets Inc. helps hospitals, health systems, acute care providers and others reduce their costs and make their operations more effective.
VHA merged with Chicago’s UHC in February, creating a conglomeration of hospitals and academic health centers. MedAssets soared to a new high for the year.
The MedAssets-Pamplona transaction is expected to close Q1 next year, pending receipt of customary approvals, including certain regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.
“By uniting VHA-UHC Alliance’s expertise with the MedAssets SCM segment’s proven strengths, this acquisition advances our mission to connect providers with the knowledge, solutions and expertise that accelerate performance”, said Curt Nonomaque, VHA-UHC Alliance’s president and chief executive officer.
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Going forward, Pamplona and VHA-UHC Alliance have agreed to work together in select service offerings to serve their mutual members and customers, representing further strategic growth opportunities for both businesses.
