Goldman Sachs Asset Management and home-grown private equity firm Everstone Capital are seeking a valuation of $1.7 billion for the sale of a controlling stake in healthcare-focused IT services firm Omega Healthcare, sources aware of the development told Moneycontrol.
“Goldman, which holds a majority stake in the company, is thinking of not selling its entire stake in Omega and will probably end up keeping a 20 percent stake, while Everstone will sell its entire stake,” said one of the sources.
The stake sale process is in early stages currently, the source added.
Goldman Sachs and Everstone declined to comment on Moneycontrol’s queries.
Founded in 2003, Omega Healthcare provides revenue cycle management, business process services, and other support services to healthcare companies.
The company streamlines medical billing, coding, collection processes and provides virtual nursing services, including triage, care continuation, clinical documentation improvement, and re-admittance avoidance.
Combining the largest medical coding staff in the world with proprietary technology, analytics, and automation capabilities, Omega Healthcare provides a comprehensive suite of outsourced solutions for the healthcare industry. Omega helps its customers manage more than $15 billion in collections each year.
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Omega Healthcare has scaled up its business through both organic and inorganic growth. In 2022, Omega acquired ApexonHealth, an AI and automation-based revenue cycle management and payor solutions provider, and Vasta Global, a provider of real-world data abstraction and analytics for the oncology market.
Omega is not the only tech co-investment by Goldman and Everstone. In January 2023, the two investors announced the acquisition of Cprime, a full-service global consulting firm with a focus on providing integrated and innovative solutions around digital transformation, product, cloud, and technology.
In 2020, Everstone had sold its IT services firm Everise to Canadian investor Brookfield Asset Management for almost $450 million. Everise provides services in health and wellness, travel, media and communications, financial services as well as supply chain.
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