Healthcare market research firm Press Ganey scooped up in $6.75B AI merger
Healthcare market research giant Press Ganey is being scooped up by Qualtrics, a company that makes use of customer data to gauge public satisfaction for products and services. The deal is worth $6.75 billion, the companies confirmed on Monday.
Notably, the Financial Times broke the story early, citing people familiar with the matter.
Qualtrics is an “experience management” company that collects and analyzes data from customers, employees, products and brands to better understand consumer trends and behavior. Press Ganey operates in a similar space but is strictly focused on healthcare and known for distributing patient satisfaction surveys.
At present, the firm works with over 41,000 hospitals, healthcare payers, clinical research firms and biotech developers nationwide. With a combination of patient feedback and statistics on safety and efficacy, Press Ganey provides research data that shapes healthcare operations across the care continuum.
Once the deal is finalized, it will be absorbed into Qualtrics. Both companies are owned by private equity firms: Qualtrics is under the umbrella of Silver Lake Technology, and Press Ganey is owned by two firms, Ares Management and Leonard Green & Partners.
As the two companies noted in their statement, the deal comes as tech platforms are beginning to look for ways to combine proprietary data sets to enhance the use of artificial intelligence—which has been something increasingly deployed by all companies working in market research.
“AI is rapidly transforming every industry, and organizations need proven, innovative solutions grounded in deep expertise to move from insight to impact faster. This investment ignites our ability to deliver,” Patrick T. Ryan, chairman and CEO of Press Ganey, said in the statement. “By bringing together two leading companies, we’re accelerating critical advancements that will elevate the human experience, driving greater safety, trust, and value for millions of patients, consumers, and employees worldwide.”
Qualtrics will be making the $6.75 billion purchase in a combination of cash and its stock, which is privately held and not traded on a public exchange.
Current clients of the analytics firm include BMW, Microsoft, and government agencies—including the U.S. Department of Homeland Security.
The transaction is expected to be finalized with regulatory approval late this year.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.