ChrysCapital sells its stake in GeBBS Healthcare to EQT

EQT picks up stake in GeBBS Healthcare from ChrysCapital.

Private equity fund ChrysCapital group has signed a definitive agreement to sell a controlling beneficial interest in GeBBS Healthcare Solutions Private Limited, a provider of revenue cycle management (RCM) services and risk adjustment solutions, to funds managed by global investment firm EQT.

On September 5, Moneycontrol had reported that EQT had edged ahead of rival suitor HillHouse in the race for acquiring GeBBS Healthcare. Earlier on August 25, Moneycontrol had first reported that both PE funds were in the final lap of the deal.

Set up in 2005, GeBBS is a technology-driven solution provider to hospital systems and payers in the US. GeBBS’ creates innovative technologies to help clients optimise their organisational workflow, improve financial performance, adhere to compliance, and enhance the overall patient experience.

The US healthcare industry is a large market with multiple stakeholders and complex structures. These complex structures underpin the need for higher RCM spending. Research suggests that the RCM services outsourcing market is estimated to reach $28 billion and record 8-9 percent CAGR. This market opportunity has allowed offshore vendors, such as GeBBS, with a broad portfolio of solutions, to witness significant tailwinds, driven by cost pressures and lack of talent onshore.

ChrysCapital acquired GeBBS Healthcare in 2018 and has been instrumental in transforming GeBBS into a leading healthcare technology company. After the acquisition, the company expanded its portfolio of offerings through strategic acquisitions, including Aviacode in 2021, CPa in 2023, MRA in 2023, and CCD Health in 2024. The company has grown to over 13,000 employees with delivery centres in India, the Philippines, US, and the Dominican Republic. The portfolio of solutions also includes AI-powered tools for coding compliance, autonomous coding, automation of accounts receivable, and streamlined workflows for risk adjustment.

“GeBBS has achieved remarkable growth, thanks to the trust of our esteemed clients, the unwavering commitment of our management team, and the dedication of our 13,000+ strong client-centric global workforce across India, the US, the Philippines, and the Dominican Republic. I would also like to extend my sincere gratitude to ChrysCapital for its strategic role in our global expansion, providing valuable expertise, resources, and a strong network. We are equally excited to welcome an investor of EQT's stature, whose profound expertise in technology services promises to be a game-changer as we embark on the next thrilling chapter of GeBBS 3.0," Milind Godbole, CEO and MD of GeBBS, said.

Akshat Babbar, managing director of ChrysCapital Advisors, stated that as a seasoned investor in enterprise technology, the company recognised the secular tailwinds in RCM quite early and chose to back a leader in GeBBS, particularly impressed by their sharp focus on engaging directly with the end-clients. "It was a pleasure partnering with MG who, building upon the foundation laid by the Thakor family, deserves much of the credit for creating this world-class platform. The acquisition by EQT assures a bright future for the company and its employees. We wish them the very best," he said.

ChrysCapital group manages $5 billion across nine private equity funds and $250 million in Clarus, its public markets fund.

Hari Gopalakrishnan, partner in the EQT Private Capital Asia advisory team and head of EQT Private Capital India, said that healthcare technology was a key investment theme for EQT. "GeBBS has developed a robust business with a clear focus on supporting healthcare providers through industry leading solutions. We see strong alignment between GeBBS’ growth ambitions and EQT’s experience in creating long-term value. We look forward to supporting the team through EQT’s proven value creation playbook to further accelerate GeBBS’ growth momentum."

Jefferies and Avendus were the financial advisors to GeBBS and its shareholders. Cooley and Shardul Amarchand Mangaldas served as legal counsel to ChrysCapital, EY was the accounting advisor, and PwC was the tax advisor.