R1 RCM Transitions to Private Ownership with New CEO
Deal News | Nov 19, 2024 | EIN
Investment funds affiliated with TowerBrook Capital Partners and Clayton, Dubilier & Rice have completed the acquisition of R1 RCM Inc., a leading provider of revenue management solutions for healthcare providers, for $8.9 billion. With this acquisition, R1 RCM has become a privately held company, and its common stock has been delisted from Nasdaq. Joe Flanagan is reappointed as CEO, replacing Lee Rivas. The acquisition aims to expand R1's capabilities in healthcare revenue automation, driven by the investment of TowerBrook and CD&R. Financial and legal advisors played significant roles in finalizing the transaction.
Sectors
- Healthcare
- Private Equity
- Technology
Geography
- United States – The primary location of R1 RCM's operations and the site of the acquisition.
- New York – Clayton, Dubilier & Rice has an office here, relevant to the transaction and advisory roles.
- London – Possible relevance due to TowerBrook's transatlantic operations and its office location.
Industry
- Healthcare – Involves the management and administration of patient care and revenue services, relevant as R1 RCM provides revenue management solutions to healthcare providers.
- Private Equity – Relates to investment firms involved in the acquisition, as TowerBrook and Clayton, Dubilier & Rice facilitated the transition of R1 RCM into a privately held company.
- Technology – Pertains to the automation and technology-driven solutions offered by R1 RCM to enhance healthcare revenue performance.
Financials
- $8.9 billion – The valuation of R1 RCM at the time of the acquisition by TowerBrook and CD&R.
- $14.30 per share – The purchase price per share offered by TowerBrook and CD&R in the acquisition of R1 RCM.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| R1 RCM Inc. | Target | Company | A leading provider of revenue management solutions for healthcare providers. |
| TowerBrook Capital Partners | Buyer | Company | An investment management firm involved in the acquisition of R1 RCM. |
| Clayton, Dubilier & Rice | Buyer | Company | A private investment firm that partnered with TowerBrook in acquiring R1 RCM. |
| Joe Flanagan | CEO | People | Reappointed CEO of R1 RCM following the acquisition. |
| Lee Rivas | Former CEO | People | Preceding CEO of R1 RCM, replaced following the acquisition. |
| Qatalyst Partners LP | Financial Advisor | Company | Served as financial advisor to the special committee of the R1 Board of Directors. |
| Barclays Capital Inc. | Financial Advisor | Company | Provided financial advisory services to R1's special committee. |
| Skadden, Arps, Slate, Meagher & Flom LLP | Legal Advisor | Company | Provided legal counsel to the special committee of the R1 Board of Directors. |
| Kirkland & Ellis LLP | Legal Advisor | Company | Provided legal counsel to R1 RCM. |
| Centerview Partners LLC | Financial Advisor | Company | Served as lead financial advisor to TowerBrook and CD&R. |
| Deutsche Bank AG | Financier | Company | One of the financial institutions that provided financing for the transaction. |