Patient Square Capital to Acquire Premier Inc. in $2.6B Deal, Taking Healthcare Group Private

Premier Inc., a prominent healthcare group purchasing organization and technology-enabled intelligence company, has agreed to a $2.6 billion acquisition by Patient Square Capital, a healthcare investment firm. The deal, announced on Monday, is set to take Premier private and is expected to close by the first quarter of 2026, subject to regulatory approvals and shareholder sign-offs.

Deal Structure and Financial Details

Under the terms of the agreement, Premier stockholders will receive $28.25 cash per share, representing a 23.8% premium over the company's 60-day volume-weighted average price as of September 5. The acquisition is not subject to any financing conditions and will suspend Premier's recently announced cash dividend, as well as those of future quarters.

Michael J. Alkire, President and CEO of Premier, stated, "Transitioning to private ownership will once again enhance the Company's financial flexibility and provide additional resources to accelerate the advancement and tech-enablement of our product portfolio, capitalize on emerging opportunities and continue pushing the envelope of innovation."

Strategic Implications for Premier

Premier, which serves more than two-thirds of all U.S. healthcare providers, boasts $84 billion in group purchasing power and maintains over 3,000 active negotiated contracts with more than 1,400 suppliers and manufacturers. The company's offerings extend beyond group purchasing to include integrated performance data and analytics, supply chain resiliency tools, and consulting services.

The move to private ownership comes after a period of financial contraction for Premier. Fiscal 2025 saw an 11% year-over-year net revenue decline and a 30% year-over-year adjusted earnings per share decline. The company had also forecasted lower net revenue and adjusted earnings per share in its fiscal year 2026 guidance.

Patient Square Capital's Vision

Neel Varshney, M.D., founding partner of Patient Square Capital, expressed optimism about the acquisition, stating, "We see tremendous opportunity for Premier to continue growing its differentiated portfolio in supply chain services, data and technology offerings, and consulting solutions that deliver value to patients, and we look forward to working closely with the team as a private company."

The deal follows Premier's strategic review initiated in spring 2023, which explored potential sale options amid what the company described as "an uncertain and challenging operating environment." This process had previously led to the divestment of Premier's non-healthcare group purchasing business for approximately $800 million in cash.