Healthcare services company MedAssets will be sold to Pamplona Capital Management in a $2.7 billion deal that will boost its revenue cycle business and result in its group purchasing organization being sold off, the companies announced Monday.
According to Pamplona, the company would combine the revenue cycle 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.
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.
"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.