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This deal will leave BPEA Private Equity Fund VIII 70-75 per cent invested. | Representative Picture
EQT Private Capital Asia, part of BPEA Private Equity Fund VIII, will acquire a controlling stake in GeBBS Healthcare Solutions, a healthcare outsourcing provider specialising in revenue cycle management (RCM), health information management, and medical billing services, for an undisclosed amount, according to a company statement.
The acquisition from ChrysCapital is aimed at accelerating GeBBS’ growth as demand for RCM services increases amid complex US healthcare operations. The deal is expected to close by March next year. As per a banker, the valuation of the deal is around $850 million.
The global RCM market, which is fragmented, continues to grow in double digits due to rising patient volumes and a shortage of skilled resources. EQT plans to drive GeBBS’ expansion into new customer segments and enhance its in-house tech capabilities. The acquisition is also expected to fuel M&A activity for GeBBS.
“Healthcare technology is a key investment theme for EQT. GeBBS has developed a robust business with a clear focus on supporting healthcare providers through industry leading solutions,” said Hari Gopalakrishnan, Partner, EQT Private Capital Asia advisory team and Head, EQT Private Capital India.
“We see strong alignment between GeBBS’ growth ambitions and EQT’s experience in creating long-term value,” he said.
Founded in 2005, GeBBS has 13,000 employees across the US, India, the Dominican Republic, and the Philippines, and serves US-based healthcare providers, including hospitals and physician practices.
This deal will leave BPEA Private Equity Fund VIII 70-75 per cent invested, with the acquisition being one of several in EQT’s broader healthcare investment strategy, according to the press release.
For ChrysCapital, the exit follows a period of significant growth for GeBBS, which expanded its global footprint through four key acquisitions under ChrysCapital’s ownership.
First Published: Sep 09 2024 | 1:00 PM IST