Access Healthcare, a leading technology-enabled platform for revenue cycle management (RCM), announced a strategic growth investment from affiliates of New Mountain Capital, LLC, a leading US growth-oriented investment firm with approximately $55 billion in assets under management on January 14.
"This partnership will support Access Healthcare’s next phase of growth, focusing on advancing its capabilities in artificial intelligence, workflow automation, product development, and expanding into new markets. The Access Healthcare leadership team will continue to steer the organization and lead this next stage of growth and innovation," the official announcement said.
The announcement did not disclose the quantum of stake sold or the deal valuation.
On October 3, 2024, Moneycontrol was the first to report that Access Healthcare was exploring options to sell stake to an investor and had mandated investment bank Jefferies for the proposed transaction.
Post the Moneycontrol report, Access Healthcare said that the firm was not "being marketed for acquisition." The firm added, "We do not comment on speculation about any ongoing strategic initiatives."
Later, a Bloomberg report on January 13 said New Mountain Capital was nearing an acquisition of Access Healthcare at a valuation of about $2 billion.
“Healthcare organizations are facing unprecedented challenges in navigating complex reimbursement systems and the need to maintain financial sustainability,” said Anurag Jain, Chairman and CEO of Access Healthcare.
“New Mountain has a strong track record of partnering with founder-led businesses, and I am confident that, together, we can accelerate our efforts to support clients to overcome these obstacles. By delivering innovative, technology-driven solutions to clients, our platform not only improves their financial performance but also enhances the overall patient experience," Jain added.
“We have long admired the Access Healthcare business, its leadership team, and the company’s reputation for world-class service quality, client outcomes, and innovation in the healthcare revenue cycle management space,” said Matt Holt, Managing Director and President, Private Equity at New Mountain.
Holt elaborated, “New Mountain’s deep experience in healthcare and provider technology, as well as its philosophy of building great businesses will help accelerate Access Healthcare in this next phase of growth. We are excited to support Access Healthcare as the company advances its strategic vision of becoming a leading revenue management platform for healthcare providers by investing in cutting-edge technology and AI capabilities, while building on its strong market reputation and client relationships.”
More about Anurag Jain
Access Healthcare chairman and CEO Anurag Jain wears several hats. He is the managing partner of Perot Jain, a Dallas-based venture capital firm, founded by Jain and Ross Perot Junior. Prior to leading Perot Jain and Access Healthcare, Jain, a cricket buff and an alumnus of University of Michigan and BITS, Pilani, also co-founded Brigade Corporation, an international customer support firm. He is seen as an early pioneer in India's outsourcing industry as a founder of Vision Healthsource. Additionally, he co-owns Texas Super Kings, a Major League Cricket franchise cricket team based in Texas.
M&A action in IT services segment
Deal activity in the IT and tech services segment has picked up in recent months, especially in the RCM space.
Earlier on October 3, Moneycontrol reported that Renuka Ramnath-led private equity firm Multiple PE has emerged as the lead contender to pick up a controlling stake in Kerala-based global IT services firm QBurst.
On September 9, private equity fund ChrysCapital group signed a definitive agreement to sell a controlling beneficial interest in GeBBS Healthcare Solutions Private Limited, a provider RCM services and risk adjustment solutions, to global investment firm EQT.
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