Investment Firm Inks $2.6B Deal to Purchase Premier

An investment firm based in Silicon Valley has agreed to buy purchasing and technology services venture Premier Inc. for roughly $2.6 billion.

Word of the deal between Charlotte-based Premier, which took in a little more than $1 billion in revenues during its recently completed fiscal year, and Patient Square Capital comes almost 20 months after the Premier board said it had completed a strategic review process that decided against selling the entire company but instead sought to shed some business lines and refocus on its supply-chain and data and technology offerings. More recently, Bloomberg reported early this month that Patient Square was lining up funding for an acquisition.

“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 President and CEO Mike Alkire said in a statement. “I am proud of everything our team has achieved and look forward to building on our progress.”

Founded in 2020 by veterans of private-equity giant KKR and accounting and advisory firm KPMG, Patient Square is dedicated to healthcare and now manages more than $14 billion in assets. The firm’s portfolio includes behavioral health services provider Summit BHC, telehealth provider Access Telecare (which comprises the former SOC Telemed and Forefront Telecare) and Medicare Advantage-focused primary-care company ChenMed.

“We have long admired Premier as an innovator of essential services and products to its members,” Founding Partner Neel Varshney said. “Our 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.”

The companies’ management teams expect to close their transaction in the first quarter of 2026 and need to clear some procedural hurdles that includes a Premier shareholders’ vote. Patient Square will pay Premier investors $28.25 per share in cash. Premier stock (Ticker: PINC) hasn’t traded that high since the spring of 2023, just before its directors said they would look into strategic alternatives.

Should Premier’s leaders call off the deal under certain circumstances—including landing a better offer from another bidder—they will be required to pay Patient Square roughly $66 million. Vice versa, if Patient Square chooses to walk away or can’t complete the deal, it will owe Premier nearly $169 million.

The planned acquisition of Premier, word of which comes almost a month after Sycamore Partners completed its purchase of Walgreens Boots Alliance, fits into a broader trend identified this summer by the team at PricewaterhouseCoopers. Tallying M&A activity from the first half of this year, PwC’s pros said technology-enabled companies working on value-based care, digital engagement or personalized preventive care are high on the list of potential buyers.

“Labor cost pressures and reimbursement uncertainty are leading firms to look for M&A targets that will enable cost efficiency, cash collection improvement and patient engagement,” they wrote.