Premier closes $2.6B take-private deal

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Dive Temporary:

Premier was acquired by healthcare-focused funding agency Affected person Sq. Capital Tuesday and stopped buying and selling on Nasdaq after greater than a decade.
Below the phrases of the take-private deal, Premier stockholders will obtain $28.25 in money per share. The acquisition valued the corporate at $2.6 billion.
The deal was first introduced in September and closed sooner than anticipated. The healthcare providers and group buying group initially anticipated the acquisition to shut within the first quarter of 2026.

Dive Perception:

Premier, which provides quite a few expertise, provide chain, monetary and operational instruments to healthcare and life sciences organizations, will now function as a wholly owned subsidiary of Affected person Sq., in accordance with a Tuesday securities submitting.

The corporate’s board resigned below the acquisition settlement, leaving CEO Michael Alkire and CFO Glenn Coleman to function administrators, Premier mentioned.

The deal’s shut comes years after Premier first mentioned in 2023 that it might discover strategic alternate options, together with a potential sale. The agency’s inventory value had declined because it managed falling income and monetary headwinds amongst its supplier customers.

Premier reported income of $240 million in the course of the quarter ended Sept. 30, down 3% 12 months over 12 months. Web earnings from persevering with operations was $15.3 million, down 79% from the $72.9 million in the course of the prior-year interval.

The agency has additionally bought off some belongings, together with its non-healthcare GPO operations and holdings in healthcare and foodservice firm S2S World. Premier can also be winding down operations at worker well being advantages subsidiary Contigo Well being, the corporate mentioned in an earnings report earlier this month.

Affected person Sq.’s portfolio contains different healthcare companies like value-based main care supplier ChenMed, acute care telemedicine agency Entry Telecare and income cycle administration agency CorroHealth.