TowerBrook and CD&R to Purchase Well being Know-how Firm R1 RCM for $8.9 Billion
TowerBrook Capital Companions and Clayton, Dubilier & Rice (CD&R), by means of their affiliated funding funds, will purchase healthcare expertise firm R1 RCM in an all-cash transaction valued at almost $8.9 billion.
R1 focuses on delivering technology-enabled options that enhance the affected person expertise and strengthen the general monetary efficiency of hospitals, well being techniques and doctor teams.
An funding automobile presently managed by TowerBrook owns roughly 36% of the excellent widespread shares, together with warrants of R1 held by TowerBrook.
Underneath the definitive settlement, TowerBrook and CD&R will buy all excellent shares of widespread inventory not already owned by TowerBrook for $14.30 per share.
This supply represents a 29% premium over R1's closing worth on February 23, 2024, earlier than New Mountain Capital's preliminary takeover proposal was made public.
The most recent deal has already been unanimously accredited by a particular committee beneath the R1 board of administrators and consisting solely of impartial administrators.
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This committee was established on March 11, 2024 to evaluate strategic alternate options.
The R1 Board of Administrators has accredited the transaction upon suggestion of the Committee.
As soon as the deal is accomplished, R1's shares might be delisted from the Nasdaq inventory alternate and it’ll grow to be a non-public firm.
The completion of this deal is now topic to acquiring shareholder and regulatory approvals and the satisfaction of sure customary closing situations.
The acquisition is predicted to shut by the top of this 12 months and might be financed with debt and fairness from funds affiliated with TowerBrook and CD&R.
Lee Rivas, CEO of R1, stated: “TowerBrook is a wonderful long-term investor and associate for R1 and shares our imaginative and prescient to be the automation platform of alternative for the provider {industry}.
“Our settlement displays TowerBrook and CD&R’s confidence in our workforce and the unequalled scale, expertise and worth we offer.”
Qatalyst Companions and Barclays are advising the particular committee, whereas Skadden, Arps, Slate and Meagher & Flom are offering authorized recommendation.
Kirkland & Ellis represents R1 in authorized issues.
Centerview Companions is serving as lead monetary advisor to TowerBrook and CD&R, whereas Deutsche Financial institution and the Royal Financial institution of Canada are offering financing and advisory providers.
TowerBrook's authorized counsel is offered by Wachtell, Lipton and Rosen and Katz. Debevoise & Plimpton offered authorized counsel to CD&R.
