Kevin Dowd April 27, 2016
An affiliate of Leonard Green & Partners has agreed to acquire ExamWorks Group (NYSE: EXAM) for $35.05 per share in cash, representing a total transaction value of about $2.2 billion. The purchase price marks a 22% premium to the company’s 90-day volume weighted average closing price as of Tuesday. The merger agreement includes a 25-day “go-shop” provision for the solicitation of other offers and still must be approved by ExamWorks shareholders, but the deal is expected to close sometime during 3Q.
ExamWorks provides an array of healthcare technology services, including independent medical examinations, peer reviews, case management, document management and record retrieval. The company’s clients include insurance carriers, law firms, claims administrators and government agencies. The sale to LGP is the second massive deal this year in the healthcare technology space, following the $2.7 billion acquisition of MedAssets by Pamplona Capital Management in January.
Across the U.S., it’s fair to say PE investor activity in healthcare technology systems is on the rise. Firms completed 59 deals in the sector last year, according to the PitchBook Platform, blowing away the previous record. Already 20 such deals have been completed this year, not including the pending ExamWorks deal.
Two firms stand above their peers as the busiest investors in the U.S. healthcare technology systems marketplace: Francisco Partners, with 21 completed deals since 2005, and Parthenon Capital Partners, with 19. No other firm has executed more than 11 in the same timeframe.
Here’s a list of the most active investors in healthcare technology systems since 2005, including add-ons: