In a major development in the healthcare IT space, global private equity giant Blackstone has emerged as the frontrunner to acquire AGS Health, a leading revenue cycle management (RCM) services firm currently owned by EQT.
According to sources familiar with the matter, Blackstone is now the lead contender in the ongoing sale process, which could value AGS Health at around $1.1 to $1.3 billion. Binding bids were submitted last week, and while a final decision is yet to be made, Blackstone is said to have pulled ahead of other bidders after the latest round of evaluations.
“Post the submission of binding bids last week, Blackstone has edged ahead of other bidders and is now seen as the lead candidate to bag the deal. A final call is yet to be taken,” said one person aware of the developments.
Two other independent sources confirmed the same information to Moneycontrol. However, when approached for comments, EQT declined to respond, and Blackstone also did not reply to email queries sent by Moneycontrol at the time of publishing.
Strong Interest in RCM Sector
The proposed buyout comes at a time when the RCM (Revenue Cycle Management) segment is witnessing heightened M&A activity. AGS Health is considered one of the few remaining large-scale RCM assets currently available in the market, making it an attractive acquisition target for strategic and financial investors.
On April 24, Moneycontrol reported that multiple suitors — including Blackstone, Frazier Partners, and a TPG-General Atlantic consortium — had advanced to the next stage of due diligence. Earlier in February, it was revealed that EQT had appointed JP Morgan and Bank of America as sell-side advisors to oversee the transaction.
AGS Health has built a strong reputation in the RCM space and is likely to draw serious interest due to its scale, quality of clients, and market presence.
EQT’s Journey with AGS Health
EQT Private Capital Asia (formerly Baring Private Equity Asia) had acquired AGS Health back in 2019 for approximately $320 million. The potential buyout at $1.1–$1.3 billion marks a substantial value creation over a five-year period.
According to AGS Health’s LinkedIn profile, the firm employs around 13,000 RCM experts and serves over 150 healthcare customers, including nearly 50% of the top 20 hospitals in the United States and 40% of the 10 largest health systems in the country.
AGS Health has a significant presence in the US healthcare market, making it a strategic asset in the global RCM landscape.
A Hotbed of M&A Activity
The RCM sector has seen a flurry of high-value deals over the past year. Some notable transactions include:
EQT’s acquisition of ChrysCapital-owned GeBBS Healthcare for over $850 million
Access Healthcare’s majority stake sale to New Mountain Capital for approximately $2 billion
Omega Healthcare’s buyout by Ontario Teachers Pension Plan for around $1.8 billion
These deals reflect the growing demand for high-quality healthcare IT and RCM services, as global private equity players continue to place big bets on digital health infrastructure.
