Premier, a leading provider of supply chain, technology, and consulting services to healthcare organizations, is set to go private through an acquisition by healthcare-focused investment firm Patient Square Capital. This deal, valued at approximately $2.6 billion, will take Premier off the public markets after more than a decade of being a publicly traded company. The acquisition is expected to close by the first quarter of 2026, pending regulatory approval and other closing conditions.
Premier offers a wide range of services to healthcare providers, including supply chain, clinical, financial, operational, and value-based care support. With more than two-thirds of U.S. providers as customers, Premier operates one of the largest group purchasing organizations in the country, wielding $87 billion in purchasing power during the last calendar year.
Under the terms of the acquisition, Premier stockholders will receive $28.25 in cash per share, representing a nearly 24% premium over the average stock price in the two months leading up to September 5. This premium decreases to about 9.7% compared to the closing price on the last trading day before the acquisition announcement.
Premier’s leadership views the go-private deal as an opportunity to deliver value to shareholders and access more capital to enhance operations and offerings, particularly in technology. CEO Michael Alkire expressed excitement about the financial flexibility and resources that private ownership will provide, enabling Premier to innovate and capitalize on emerging opportunities in the evolving healthcare landscape.
Patient Square Capital, based in Menlo Park, California, manages over $14 billion in assets and has a diverse portfolio of healthcare companies, including ChenMed, Elevage, and Access Telecare. With the recent acquisition of Patterson Companies in April, Patient Square now adds Premier to its roster, aiming to support the company’s growth and innovation initiatives.
Premier has faced financial challenges amidst economic pressures impacting its provider base, reporting a decrease in net income and revenue in its most recent fiscal year. Following a strategic review in 2023, Premier made moves to streamline its operations by selling off non-healthcare group purchasing operations and other assets.
The board of Premier has unanimously approved the acquisition by Patient Square, signaling a new chapter for the company as it transitions to private ownership. This strategic move is expected to provide Premier with the resources and support needed to further advance its product portfolio, drive innovation, and navigate the ever-changing healthcare landscape.
