Charlotte, North Carolina-based Premier Inc. has agreed to a $2.6 billion acquisition that will take the healthcare group purchasing, technology and intelligence organization private under an affiliate of healthcare investment firm Patient Square Capital.
The definitive agreement, announced Monday morning, is subject to regulatory approvals as well as shareholder sign-offs but is expected to close by the first quarter of 2026.
If consummated, Premier stockholders would receive $28.25 cash per share, which the companies said is a 23.8% bump over its 60-day volume-weighted average price as of Sept. 5. The deal is not subject to any financing conditions and suspends a cash dividend announced by Premier’s board last month as well as those of future quarters.
Premier’s leadership, in statements, said the deal offers new capital to build up its healthcare product and service offerings.
“Since going public in 2013, Premier has leveraged our access to capital to build unmatched supply chain expertise, world-class technology, and nationally recognized advisory capabilities that enable our members to continuously improve their cost, quality, and operational efficiencies,” Michael J. Alkire, president and CEO of Premier, said in the announcement. “Now, as the health care landscape continues to rapidly evolve, transitioning to private ownership will once again enhance the Company’s financial flexibility and provide additional resources to accelerate the advancement and tech-enablement of our product portfolio, capitalize on emerging opportunities and continue pushing the envelope of innovation.”
Premier counts more than two-thirds of all U.S. healthcare providers among its customer base. The company says it represents $84 billion in group purchasing power and holds more than 3,000 active negotiated contracts with more than 1,400 suppliers and manufacturers—though it sold off its non-healthcare group purchasing business for about $800 million in cash a few years back.
Beyond group purchasing, Premier’s broad offerings for providers, suppliers and payers span integrated performance data and analytics, supply chain resiliency tools and consulting. It also convenes several healthcare provider collaboratives on quality, bundled payments, population health management, workforce innovation and other organizational priorities.
Neel Varshney, M.D., founding partner of Patient Square Capital, said his team “sees tremendous opportunity for Premier to continue growing its differentiated portfolio in supply chain services, data and technology offerings, and consulting solutions that deliver value to patients, and we look forward to working closely with the team as a private company.”
Premier is currently listed on the Nasdaq and is trading about 5% higher on the morning’s news. Fiscal 2025, the numbers on which were reported last month, was the latest in a multiyear contraction with 11% year-over-year net revenue decline and 30% year-over-year adjusted earnings per share decline—despite leadership characterizing the performance as better than expected. The company also forecast lower net revenue and adjusted earnings per share in its fiscal year 2026 guidance.
Premier’s board had signaled back in spring 2023 that it was exploring a potential sale or other strategic alternatives amid “an uncertain and challenging operating environment,” a process that led to the aforementioned divestment of its non-healthcare group purchasing business.
Leadership, which had directed $800 million of share repurchases in fiscal 2025, said the acquisition by Patient Square Capital is a good deal for its current investors.
“The Board unanimously approved this transaction, after careful consideration of a wide range of strategic alternatives in recent years and consultation with our financial and legal advisors,” Richard Statuto, Premier’s board chair, said in the announcement. “We believe this transaction is in the best interests of Premier and its stockholders and, upon closing, will deliver immediate and certain value to our stockholders, while simultaneously providing the Company with access to additional capital that can accelerate the support and services provided to members and other customers during this critical time in healthcare.”