Swedish Private Equity fund EQT has signed an agreement with homegrown PE fund ChrysCapital to acquire GeBBS Healthcare Solutions, a leading provider of revenue cycle management (RCM) services and risk adjustment solutions, said a press statement today. ET was the first to report that EQT is signing a deal to acquire GeBBS on September 5. According to sources, EQT acquired 100% stake in GeBBS for about $860-870 million, though the financial details were not disclosed by the parties.
Asia-focused PE fund Hillhouse Investment was another contender in the race for the US-based GeBBS. In one of the leading exits in the BPO sector, ChrysCap has reaped a 4X return from its 6-years old investment in GeBBS. ChrysCap acquired an 80% stake in GeBBS in 2018 for $140 million, at a valuation of $175 million.
Established in 2005, GeBBS is a technology-driven solution provider to hospital systems and payers in the US. GeBBS helps clients optimize their organizational 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, added the statement. Research suggests that the RCM services outsourcing market is estimated to reach $28 billion and grow at 8 - 9% CAGR. This market opportunity has allowed offshore vendors, such as GeBBS, with a broad portfolio of solutions, to witness signif.