New York-based private equity firm New Mountain Capital has made an offer to acquire roughly two-thirds of shares it does not already own in R1 RCM, a provider of healthcare sector revenue cycle management services, in a take-private deal valued at $5.8bn, according to a report by Stat citing regulatory filings.
According to the regulatory filing made on Monday, New Mountain Capital, R1’s second largest investor, is willing to pay $13.75 per share to acquire the business, which represents a 24% premium to the company’s closing price on Friday.
The firm has asked R1 for a waiver of standstill restrictions, according to the filing, allowing it to work on the terms of a deal with the company’s board as well as other investors including nonprofit hospital operator Ascension Health and private equity firm TowerBrook Capital Partners, which together own 30% of the business.
In response to the offer, R1 reportedly asked New Mountain Capital to “engage in good faith discussions” with Ascension and TowerBrook and several in-person meetings took place during February, although a deal has yet to be finalised.
