Patient Square Capital reaches $2.6B deal to buy Premier, and make it private
The healthcare investment firm and Premier say the deal should close early next year. Premier works with hospitals on supply chain solutions, data analytics and other areas.
A healthcare company that does business with thousands of hospitals is poised to have new ownership, and will no longer be publicly traded.
Michael J. Alkire, Premier’s president and CEO
Patient Square Capital, a private equity firm that invests in health care, has reached a definitive agreement to buy Premier, Inc., in a $2.6 billion deal. As part of the deal, Premier would transition to a private company.
The two organizations announced the deal on Monday. Regulators and Premier’s stockholders still must sign off on the deal, but the companies said they hope to close the transaction in the first quarter of 2026.
Michael J. Alkire, Premier’s president and CEO, said the deal would allow Premier to continue to invest in new technologies to offer top services to its clients.
Based in Charlotte, North Carolina, Premier first began being publicly traded in 2013. The company’s stock is traded on NASDAQ (PINC). “Now, as the health care landscape continues to rapidly evolve, transitioning to private ownership will once again enhance the Company’s financial flexibility and provide additional resources to accelerate the advancement and tech-enablement of our product portfolio, capitalize on emerging opportunities and continue pushing the envelope of innovation,” Alkire said in a statement.
Under the deal, Premier stockholders would be paid $28.25 in cash per share, which the company said was nearly 24% above its 60-day average price in early September. A year ago, the stock was trading at just under $20 per share.
Neel Varshney, MD, founding partner of Patient Square, said in a news release that Premier is “an innovator of essential services and products to its members, which are leading institutions and providers in the U.S. health care system.”
“Our team sees tremendous opportunity for Premier to continue growing its differentiated portfolio in supply chain services, data and technology offerings, and consulting solutions that deliver value to patients, and we look forward to working closely with the team as a private company,” Varshney said.
Premier boasts a network of more than 4,350 member hospitals and health systems. The company touts savings of billions of dollars by helping companies manage purchases and supply chains more efficiently, among other services.
Bloomberg reported that Patient Square was exploring the possibility of acquiring Premier earlier this month.
Patient Square completed the acquisition of Patterson Companies, which offers products and services to the dental and animal health markets, in May.
Premier has been focusing on the healthcare industry. In 2023, Premier sold its non-healthcare group purchasing operations to OMNIA Partners in a deal for about $800 million.
Founded in 2020, Patient Square has invested billions of dollars in healthcare companies, and has invested in medical device companies, pharmaceutical firms, therapeutics, and companies providing other healthcare services.
Patient Square’s portfolio includes Access Telecare, Apollo Therapeutics, Elevage Medical Technologies, Enavate Sciences, Kriya Therapeutics, Radius Health, Resolve Biosciences, and Summit BHC.
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