RCM firm AGS Health may draw $1 billion bids from Blackstone, General Atlantic, and TPG: Report

Earlier this year, New Mountain Capital acquired Access Healthcare, and Ontario Teachers' Pension Plan purchased Omega Healthcare.

Global private equity firms Blackstone Inc., General Atlantic, and TPG Capital are reportedly in talks to acquire revenue cycle management firm AGS Health for approximately $1 billion, according to a report by Mint citing people familiar with the matter.

The deal process, which began earlier this year, is expected to conclude in the next quarter, the report added.

"The AGS deal has progressed to the second round and, currently, due diligence is being carried out," a source told Mint. The person further noted that the deal is likely to reach its final stages within the next 6-8 weeks.

Emailed queries to TPG went unanswered, while spokespeople for Blackstone, General Atlantic, and EQT declined to comment. Moneycontrol could not independently verify the Mint report.

AGS Health, which operates from Washington and Chennai, is one of the few remaining revenue cycle management (RCM) firms in India that are attracting significant investor interest, the report added. Earlier this year, New Mountain Capital acquired Access Healthcare, and Ontario Teachers' Pension Plan purchased Omega Healthcare.

EQT, formerly known as Barings Private Equity Asia, acquired AGS in 2019 for $320 million. The global private equity firm has reportedly engaged investment banks JPMorgan and Bank of America (BofA) to facilitate the sale process, Mint reported.

AGS Health offers services such as medical billing, claim submission, denial management, and medical coding. The company supports over 150 clients, including nearly half of the 20 most prominent US hospitals and 40% of the country’s 10 largest health systems. With a workforce of 13,000 RCM experts, AGS Health is known for helping healthcare providers and insurers improve profitability, scalability, and compliance.