Health plan tech firm Convey Health Solutions goes private in $1.1 billion deal

Convey Health Solutions, which provides technology and analytics services for health plans such as Medicare and Medicaid, announced it would go private through a merger with its major shareholder, TPG Capital.

Under the terms of the deal, private equity firm TPG will acquire all of the outstanding common stock of Convey not currently owned by TPG or certain management and director shareholders for $10.50 per share in cash, or approximately $1. 1 billion. The merger is expected to be completed in the second half of 2022.

“We believe this transaction provides substantial value, liquidity and security for our shareholders. Going forward, as a private company and with the support of TPG, we will be able to continue to invest in the company and better serve our customers says Stephen Farrell. , CEO of Convey, in a statement.

THE BIGGER TREND

Convey, founded in 2001, was first acquired by TPG from New Mountain Capital in 2019. Then it went public last year.

Convey’s stock rose after news of the deal broke. It closed last Friday $4.32 a share and wrapped up at $10.36 yesterday.

ON THE REGISTRATION

“Convey is a leading integrated payer technology platform that enables efficiencies and improves clinical and financial outcomes across the healthcare system. We look forward to continuing our partnership in the next chapter as a private company,” said Katherine Wood, partner at TPG, in a press release. a statement.