Today a definitive agreement was announced whereby Pamplona Capital Management will acquire MedAssets for roughly $2.7 billion - or $31.35 per share of stock, in cash.

"We are excited to be acquiring this leading health care performance improvement platform company that serves four out of every five hospitals in the United States," said Dr. Jeremy Gelber, Pamplona Capital Management partner, in a statement. The next step, according to Gelber, will be to combine the MedAssets Revenue Cycle Management (RCM) business — which touches more than $450 billion in gross patient revenue annually for more than 2,700 providers — with Pamplona's Precyse, in the interest of establishing an industry-leading end-to-end revenue cycle technology and services business.

After the completion of the acquisition, Pamplona intends to sell the MedAssets Spend and Clinical Resource Management (SCM) business — which serves approximately 3,300 hospitals and 123,000 non-acute health care providers — to VHA-UHC Alliance. VHA-UHC Alliance is the largest member-owned health care company in the U.S. and came together in a merger in February 2015.
Going forward, Pamplona and VHA-UHC Alliance have agreed to work together in select service offerings to serve their mutual members and customers, representing further strategic growth opportunities for both businesses.

VHA-UHC Alliance serves more than 5,200 health system and hospital members and affiliates including virtually all the academic medical centers and health systems, as well as 118,000 non-acute health care customers representing more than $50 billion in annual purchasing volume.

On behalf of MedAssets, R. Halsey Wise, chairman and CEO, said the company has been developing in preparation for a growth-oriented future within a value-based health care world.

"Over the last year, our progress captured the attention of outside parties, and we received a number of unsolicited inquiries expressing interest in acquiring MedAssets. Our board of directors and executive leadership team conducted a thorough review of strategic alternatives and, after careful consideration, we determined an acquisition by Pamplona is the best course of action for our shareholders, customers and employees."

The deal is expected to close in the first quarter of 2016. Among the regulatory closing conditions required is the approval of the MedAssets' stockholders, which is anticipated.

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