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

Premier Inc., a leading healthcare group purchasing organization and technology-enabled intelligence provider, has agreed to be acquired by Patient Square Capital in a $2.6 billion deal that will take the company private. The transaction, announced on Monday, marks a significant shift for Premier, which has been publicly traded since 2013.

Deal Structure and Financial Details

Under the terms of the agreement, Premier stockholders will receive $28.25 in cash per share, representing a 23.8% premium over the company's 60-day volume-weighted average price as of September 5. The deal, which is not subject to any financing conditions, is expected to close by the first quarter of 2026, pending regulatory approvals and shareholder sign-offs.

The acquisition will suspend Premier's recently announced cash dividend and those of future quarters. Premier's board of directors unanimously approved the transaction, citing it as the best outcome for stockholders following a strategic review process that began in spring 2023.

Strategic Rationale and Industry Impact

Michael J. Alkire, President and CEO of Premier, emphasized the strategic benefits of the transition to private ownership, stating, "As the healthcare landscape continues to rapidly evolve, 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."

Premier, which serves more than two-thirds of U.S. healthcare providers, offers a wide range of services including supply chain management, clinical and financial analytics, and consulting. The company's group purchasing organization wields significant influence, representing $84 billion in purchasing power across more than 3,000 active contracts with over 1,400 suppliers and manufacturers.

Recent Performance and Future Outlook

The acquisition comes at a time when Premier has faced financial headwinds. In its most recent fiscal year, the company reported a net income of $20.3 million on $1 billion in revenue, representing year-over-year declines of 83% and 11%, respectively. Despite these challenges, Premier's leadership characterized the company's recent performance as better than expected.

Neel Varshney, M.D., founding partner of Patient Square Capital, expressed optimism about Premier's future, 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."

As Premier transitions to private ownership, the healthcare industry will be watching closely to see how this change impacts the company's strategic direction and its ability to navigate the evolving healthcare landscape.