R1 RCM Acquired by TowerBrook and CD&R in $8.9 Billion Deal
Deal News | Nov 19, 2024 | Globenewswire
R1 RCM Inc., a leader in automating revenue management for healthcare providers, has been acquired by investment funds affiliated with TowerBrook Capital Partners and Clayton, Dubilier & Rice for approximately $8.9 billion. The acquisition, initially announced in August 2024, includes all outstanding shares of R1 common stock at $14.30 per share in cash. Following the closure of the transaction, R1's stock has stopped trading on Nasdaq, and the company plans to halt its periodic reporting obligations to the SEC. Joe Flanagan, returning as CEO, aims to enhance R1's value through advanced automation in healthcare revenue management. Prestigious advisory firms including Qatalyst Partners, Barclays, and legal counsel Skadden, Arps, served significant roles in executing this acquisition.
Sectors
- Healthcare Technology
- Private Equity
Geography
- United States – R1 RCM is headquartered in Murray, Utah, and TowerBrook and CD&R have significant U.S. operations.
Industry
- Healthcare Technology – R1 RCM specializes in technology-driven revenue management solutions for healthcare providers.
- Private Equity – The acquisition of R1 RCM was led by private equity firms TowerBrook Capital Partners and Clayton, Dubilier & Rice.
Financials
- $8.9 Billion – The total valuation of the acquisition deal for R1 RCM.
- $14.30 – Per share purchase price in cash for R1 common stock.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| R1 RCM Inc. | Target Company | Company | A leader in automating revenue management for healthcare providers. |
| TowerBrook Capital Partners | Bidding Company | Company | A purpose-driven, transatlantic investment management firm. |
| Clayton, Dubilier & Rice | Bidding Company | Company | A leading private investment firm focused on building sustainable businesses. |
| Joe Flanagan | CEO | Person | Newly reinstated CEO of R1 RCM, with experience since April 2013. |
| Lee Rivas | Former CEO | Person | Outgoing CEO, succeeded by Joe Flanagan. |
| Qatalyst Partners LP | Financial Advisor | Company | Served as financial advisor to the special committee of the R1 Board. |
| Barclays Capital Inc. | Financial Advisor | Company | Provided financial advice to the special committee of the R1 Board. |
| Skadden, Arps, Slate, Meagher & Flom LLP | Legal Advisor | Company | Legal counsel to the special committee of the R1 Board. |
| Centerview Partners LLC | Financial Advisor | Company | Lead financial advisor to TowerBrook and CD&R. |
| Various Banks | Financiers | Company | Deutsche Bank AG, Royal Bank of Canada, The Toronto-Dominion Bank, and others provided financing for the acquisition. |