What You Should Know:
– R1 RCM Inc., a leading provider of technology-driven healthcare revenue cycle management solutions, announced that it has entered into a definitive agreement to be acquired by investment funds affiliated with TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R). The all-cash transaction values R1 at approximately $8.9 billion.
– Under the terms of the agreement, TowerBrook and CD&R will acquire all outstanding shares of R1 common stock not already owned by TowerBrook for $14.30 per share. This represents a premium of approximately 29% to R1’s closing share price on February 23, 2024, the last trading day before New Mountain Capital publicly disclosed its initial acquisition proposal.
– TowerBrook, which currently owns approximately 36% of R1’s outstanding shares, will continue as a significant investor in the company alongside CD&R. The transaction is expected to close by the end of the year, subject to customary closing conditions, including stockholder approval and regulatory approvals.
– The acquisition of R1 by TowerBrook and CD&R signifies a strong endorsement of the company’s business model and growth prospects. As a private company, R1 will have greater flexibility to execute its long-term strategy and invest in growth initiatives.
