Bain Capital and Parthenon Capital are in discussions to sell a minority stake in healthcare technology company Zelis in a deal that could value the firm at around $17bn, according to a report by Bloomberg.
The reports cites sources familiar with the matter as revealing that the private equity firms are considering selling between 20% to 25% of Zelis, with the potential deal attracting interest from various parties, including health insurers, payment companies, buyout firms, and sovereign wealth funds, according to the sources.
Earlier this year, Bain and Parthenon were evaluating multiple options for Zelis, including an outright sale, an initial public offering (IPO), or bringing in new investors through a private transaction, as Bloomberg News reported in January. They are now leaning towards selling a stake to maintain involvement in the company’s growth, one of the sources indicated.
Goldman Sachs and JPMorgan Chase are advising Bain and Parthenon on the potential deal, although the talks are still ongoing, and no final decision has been made, according to Bloomerg’s sources.
Representatives for Bain and Goldman Sachs declined to comment, while Parthenon, JPMorgan, and Zelis did not immediately respond to requests for comment.
Zelis operates a platform that digitialises healthcare payments, replacing the industry’s reliance on paper checks. The company partners with hundreds of healthcare payers to manage claims, and negotiate with providers.
Bain Capital initially invested in Zelis through a merger with Parthenon-backed RedCard Systems in 2019, combining the two healthcare payment technology companies into a unified platform.
