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Blackstone, GA, TPG in fray for AGS in $1 bn deal: report
AGS Health operates from Washington and Chennai is among the few RCM in India that are attracting investor interest.
Private equity firms Blackstone Inc, General Atlantic and TPG Capital are in talks to acquire EQT-backed revenue cycle management firm AGS Health for close to $1 billion, Mint reported, citing people aware of the matter.
The deal talks, which began earlier this year, may end by June, the report said.
Revenue cycle management (RCM) firms specialize in managing the financial operations related to billing and collecting revenue for healthcare services.
Deal talks have entered the second leg, with due diligence being carried out, and may enter the final lap in about eight weeks, the report added.
AGS Health, a revenue cycle management firm with operations in Washington and Chennai, is among some firms in this domain that are drawing significant investor interest.
AGS Health offers technology-enabled solutions that enhance operational efficiencies for healthcare providers. Their global presence and skilled workforce cater to a diverse client base.
When contacted Blackstone declined to comment, General Atlantic, TPG Capital and AGS Health did not respond to emailed query.
Recent big-ticket deals in this domain include New York-based investment firm New Mountain Capital’s acquisition of Access Healthcare in January, and a joint investment by Canada’s Ontario Teachers’ Pension Plan and Goldman Sachs Alternatives in Omega Healthcare in December.
Access Healthcare specializes in RCM services, while Omega Healthcare offers a broad range of technology-driven healthcare management solutions, including RCM and clinical services.
EQT, earlier known as Barings Private Equity Asia, acquired AGS in 2019 for $320 million, with merchant banks including JPMorgan and Bank of America facilitating the sale process.
AGS offers a range of services, including medical billing, claim submission, denial management and medical coding.
The firm has more than 150 customers, including 20 US hospitals and about 40% of Indian’s largest health systems.
Employing over 13,000 staff, AGS Health offers solution to healthcare providers and insurers to enhance profitability, scalability, compliance.
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