Investment firm agrees to acquire MedAssets and divest one of its segments
Pamplona Capital Management agreed to acquire MedAssets for approximately $2.7 billion, or $31.35 per share, in cash, the companies announced on Nov. 2.
Pending shareholder approval and other closing conditions, the deal is expected to close in the first quarter of 2016.
MedAssets, a healthcare performance improvement company, serves 4,500 hospitals, 123,000 non-acute healthcare providers, payers and healthcare IT vendors. It offers cost and clinical resource management, purchasing and revenue cycle solutions, change management consulting, embedded management and process improvement services, as well as data and analytics tools.
Pamplona Capital Management, an investment management company that manages more than $10 billion in assets, plans on combining the MedAssets revenue cycle management segment with its Precyse business. In July, Pamplona acquired Precyse, a health information management services, technology and education company.
MedAssets’ revenue cycle management segment serves more than 2,700 hospitals, which have an annual gross patient revenue of more than $450 billion.
Pamplona also announced it agreed to sell MedAssets’ spend and clinical resource management segment to VHA-UHC Alliance NewCo, Inc. VHA, a national network of non-profit hospitals, combined on April 1 with UHC, an alliance of academic medical centers. VHA-UHC serves more than 5,200 health system members and affiliates and 118,000 non-acute healthcare customers.
For the third quarter of 2015, MedAssets’ revenue increased 8.1 percent to $190 million. During the quarter, revenue was $117.2 million for the spend and clinical resource management segment and $72.7 million for the revenue cycle management segment.
MedAssets sustained a net loss of $2.2 million during the quarter, primarily due to restructuring and divesting products.
On Sept. 28, MedAssets announced it would reduce its workforce by approximately 5 percent by the end of 2015. MedAssets said it incurred pre-tax restructuring charges of $5 million during the quarter that were related to the restructuring. It also announced it would eliminate revenue cycle management products, which led to an aggregate asset impairment charge of $10.3 million in the quarter.
Executive Editor
Tim Casey joined TriMed Media Group in 2015 as Executive Editor. For the previous four years, he worked as an editor and writer for HMP Communications, primarily focused on covering managed care issues and reporting from medical and health care conferences. He was also a staff reporter at the Sacramento Bee for more than four years covering professional, college and high school sports. He earned his undergraduate degree in psychology from the University of Notre Dame and his MBA degree from Georgetown University.