Premier, a healthcare services and group purchasing organization, recently underwent a significant change in ownership. On Tuesday, the company was acquired by Patient Square Capital, a healthcare-focused investment firm. As a result of the acquisition, Premier ceased trading on Nasdaq after more than a decade on the stock exchange.
The acquisition deal, which valued Premier at $2.6 billion, involved stockholders receiving $28.25 in cash per share. Originally announced in September, the deal closed earlier than expected, with Premier initially anticipating the acquisition to be finalized in the first quarter of 2026.
Following the acquisition, Premier will now operate as a wholly owned subsidiary of Patient Square Capital. The company’s board resigned as part of the purchase agreement, leaving CEO Michael Alkire and CFO Glenn Coleman to serve as directors within the new organizational structure.
Premier’s decision to explore strategic alternatives, including a potential sale, dates back to 2023. The company had been facing challenges such as declining revenue and financial difficulties among its provider consumers, leading to a decrease in stock price. In the quarter ending Sept. 30, Premier reported a 3% year-over-year decrease in revenue, with net income from continuing operations also dropping significantly.
In addition to the acquisition, Premier has also divested some of its assets, including non-healthcare GPO operations and holdings in other companies like S2S Global. The company is in the process of winding down operations at Contigo Health, its employee health benefits subsidiary.
Patient Square Capital’s diverse portfolio includes other healthcare entities such as ChenMed, a value-based primary care provider, Access Telecare, an acute care telemedicine firm, and CorroHealth, a revenue cycle management company. With Premier now under its ownership, Patient Square Capital aims to leverage the company’s technology, supply chain, financial, and operational tools to enhance its overall healthcare offerings.
This acquisition marks a new chapter for Premier as it transitions to a privately owned entity under the guidance of Patient Square Capital. The company’s focus on providing essential services to healthcare and life sciences organizations remains unchanged, with the potential for new growth opportunities on the horizon.
