Healthcare firm Premier to be taken private in $2.6 billion deal

Healthcare services provider Premier Inc. announced on Monday that it has agreed to be taken private by an affiliate of investment firm Patient Square Capital in a transaction valued at approximately $2.6 billion.

Premier, headquartered in North Carolina, partners with hospitals, health systems, and other providers to help cut costs and improve patient care, largely by coordinating the purchase of medical equipment and supplies.

Under the terms of the agreement, Patient Square will acquire Premier at $28.25 per share in cash, representing a 9.7% premium over the company’s closing price on Friday. The deal is expected to close by the first quarter of 2026, pending regulatory and shareholder approvals.

"As the healthcare landscape continues to rapidly evolve, transitioning to private ownership will once again enhance the company's financial flexibility," said Michael Alkire, Premier’s Chief Executive Officer.

Premier began exploring strategic alternatives in early 2023, including a possible sale of the company or partnerships. Shortly thereafter, it sold certain non-healthcare operations to Omnia Partners for about $800 million, a move designed to sharpen its focus on core healthcare operations.

Analysts view the move as a natural step. Michael Cherny, analyst at Leerink Partners, said a go-private deal "seems logical," citing the disconnect between Premier’s strategic value to health systems and its performance in public markets. He added that with significant untapped capital in private equity, more such transactions across the healthcare sector could follow.

Following the announcement, Premier’s shares rose 8.7% in premarket trading, reaching $28.