Blackstone Leads Bid for EQT-Owned AGS Health in $1.1-1.3 Billion Deal

According to a Moneycontrol news report, Global private equity firm Blackstone has emerged as the front-runner to acquire healthcare IT services provider AGS Health from EQT Private Capital Asia. The deal is expected to be valued between $1.1 billion and $1.3 billion.

Binding Bids Submitted

The binding bids were submitted last week. Following this, Blackstone has taken the lead position in the sale process. A final decision has not yet been made. Other bidders in the fray include a consortium of TPG and General Atlantic, Frazier Partners, and Vitruvian Partners.

AGS Health Background

EQT acquired AGS Health in 2019 for approximately $320 million. The company specialises in revenue cycle management (RCM) services and supports over 150 clients. According to its reports, AGS Health employs around 13,000 professionals and works with nearly half of the top 20 hospitals in the United States and 40% of the top 10 health systems.

Advisors and Earlier Reports

EQT appointed JP Morgan and Bank of America as sell-side advisors. In April 2024, it was reported that shortlisted bidders had moved to the next round for due diligence. The deal is part of EQT’s broader exit strategy from AGS Health.

Read more: Blackstone Inc to Invest $11 Billion in Indian Data Centres

RCM Sector Activity

The RCM space has seen a series of large transactions recently. EQT acquired GeBBS Healthcare from ChrysCapital for over $850 million. Access Healthcare, based in Chennai, saw a majority stake sold to New Mountain Capital for approximately $2 billion. Omega Healthcare was acquired by Ontario Teachers’ Pension Plan in a $1.8 billion deal.

Conclusion

If successful, Blackstone’s acquisition of AGS Health would mark a major transaction in the healthcare IT and RCM sector. The space has seen growth in M&A activity in the past year, with multiple large-scale buyouts taking place across India and the U.S.

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