Press Ganey, a healthcare performance improvement company, is to be acquired by EQT Equity fund EQT VII, part of the global private equity group EQT.
Under the terms of the agreement, EQT will acquire all of Press Ganey’s common stock.
Shareholders of record will receive USD40.50 in cash per share of Press Ganey common stock, resulting in an enterprise value of approximately USD2.35 billion.
The offer price represents a 20 per cent premium to the year to date volume-weighted average price and a 62 per cent premium to the initial public offering price for the common stock.
The acquisition of Press Ganey represents EQT’s first direct EQT Equity investment in North America.
“We are very excited about this transaction as it delivers value for our shareholders and allows Press Ganey to accelerate our investment in both acquisitions and product innovation that best serve our clients,” says Patrick Ryan, CEO of Press Ganey. “I have tremendous respect for EQT as a top flight investment firm, and I look forward to partnering with them as we develop new solutions to advance patient-centred care in the US and internationalise the business in the next phase of our development.”
“We are excited by the unique opportunity to acquire Press Ganey, in a transaction highlighting EQT’s deep expertise and commitment to investing in market-leading healthcare companies,” says Eric Liu, partner at EQT Partners Inc, investment adviser to EQT Equity. “As one of the most active global healthcare investors, with a demonstrated track record of success, we believe that EQT is an ideal partner for Press Ganey, as the company seeks to expand both organically and through acquisitions. EQT will leverage its deep platform and provide valuable resources to support Press Ganey’s continued growth.”
“Press Ganey has made a tangible contribution to improving healthcare delivery by empowering patient voices,” says Norman W Alpert, chairman of Press Ganey and co-president of Vestar Capital Partners. “We are pleased with the value delivered to shareholders and the opportunity for the organisation to enter its next phase of growth with EQT.”
