Dive Brief:
- Premier was acquired by healthcare-focused investment firm Patient Square Capital Tuesday and stopped trading on Nasdaq after more than a decade.
- Under the terms of the take-private deal, Premier stockholders will receive $28.25 in cash per share. The acquisition valued the company at $2.6 billion.
- The deal was first announced in September and closed earlier than anticipated. The healthcare services and group purchasing organization initially expected the acquisition to close in the first quarter of 2026.
Dive Insight:
Premier, which offers a number of technology, supply chain, financial and operational tools to healthcare and life sciences organizations, will now operate as a wholly owned subsidiary of Patient Square, according to a Tuesday securities filing.
The company’s board resigned under the purchase agreement, leaving CEO Michael Alkire and CFO Glenn Coleman to serve as directors, Premier said.
The deal’s close comes years after Premier first said in 2023 that it would explore strategic alternatives, including a possible sale. The firm’s stock price had declined as it managed falling revenue and financial headwinds among its provider consumers.
Premier reported revenue of $240 million during the quarter ended Sept. 30, down 3% year over year. Net income from continuing operations was $15.3 million, down 79% from the $72.9 million during the prior-year period.
The firm has also sold off some assets, including its non-healthcare GPO operations and holdings in healthcare and foodservice company S2S Global. Premier is also winding down operations at employee health benefits subsidiary Contigo Health, the company said in an earnings report earlier this month.
Patient Square’s portfolio includes other healthcare firms like value-based primary care provider ChenMed, acute care telemedicine firm Access Telecare and revenue cycle management firm CorroHealth.
