EQT to acquire GeBBS Healthcare Solutions in $870Mn deal
STOCKHOLM, SWEDEN — Swedish private equity firm EQT is acquiring GeBBS Healthcare Solutions from ChrysCapital in a deal that puts the former’s value at about $870 million.
The strategic acquisition will go toward accelerating further GeBBS’ growth in the fast growing revenue cycle management (RCM) services market. It also strategically complements EQT’s focus on healthcare technology investments.
Hong Kong-based Hillhouse Investment was another contender in the race to acquire GeBBS.
GeBBS: A global leader in healthcare outsourcing
GeBBS Healthcare Solutions was founded in 2005 and has emerged as a globally recognized source for healthcare outsourcing solutions. Its expertise encompasses end-to-end RCM, health information management, and medical billing services for healthcare providers in the United States.
GeBBS is ranked #47 in the OA500 2024, an objective index of the world’s top 500 outsourcing companies.
“We are excited to welcome an investor of EQT’s stature, whose profound expertise in healthcare and technology services promises to be a game-changer as we embark on the next thrilling chapter of GeBBS”, said Dr. Milind Godbole, CEO and Managing Director of GeBBS.
“EQT has an impressive track record of building and scaling technology and business services platforms successfully. With a strong foundation built under ChrysCapital’s ownership, we believe we are well positioned to take GeBBS to the next level under EQT’s ownership using its well proven value creation playbook.”
"We are excited to welcome an investor of EQT's stature, whose profound expertise in healthcare & technology services promises to be a game-changer as we embark on the next thrilling chapter of GeBBS," said Dr. Milind Godbole, CEO & MD of GeBBS. Read more: https://t.co/AaPjrYfFtZ
— GeBBS Healthcare (@gebbshealthcare) September 9, 2024
GeBBS employs 13,000 staff across 16 delivery centers globally. In the healthcare business process outsourcing (BPO) space, GeBBS competes with industry giants like Wipro, IBM, Cognizant, and Accenture.
The company has demonstrated impressive financial performance, posting revenues of approximately $200 million and EBITDA of $50 million in fiscal year 2024. The company’s growth trajectory remains strong, with projections indicating an EBITDA increase of $70 million for FY 2025.
EQT’s vision for GeBBS and health tech investments
“Healthcare technology is a key investment theme for EQT. GeBBS has developed a robust business with a clear focus on supporting healthcare providers through industry leading solutions,” said Hari Gopalakrishnan, Partner in the EQT Private Capital Asia advisory team and Head of EQT Private Capital India.
“We see strong alignment between GeBBS’ growth ambitions and EQT’s experience in creating long-term value. We look forward to supporting the team through EQT’s proven value creation playbook to further accelerate GeBBS’ growth momentum.”
EQT wants to contribute with more than a decade of experience within the healthcare technology market to leverage GeBBS for its next growth stage, moving into new customer segments, strengthening its own in-house technology capabilities, and further mergers and acquisitions.
The transaction is expected to close in Q4 2024 and will mark a huge milestone for the healthcare outsourcing industry. With the healthcare BPO global demand expected to reach $626 billion by 2029, GeBBS is well-positioned to capitalize on the growing demand for efficient healthcare financial management solutions.
