R1 RCM to be taken over for $8.9 billion

By Steve Gelsi

Hospital management software company had been in play since February.

R1 RCM Inc's stock was up 8.7% Thursday after the revenue cycle management company for hospitals agreed to be taken private by TowerBrook Capital Partners and Clayton, Dubilier & Rice for $14.30 a share.

The deal values Murray, Utah-based R1 RCM (RCM) at about $8.9 billion.

The $14.30 share price is a premium of 29% over R1 RCM's closing stock price on Feb. 23, the day before New Mountain Capital disclosed its initial non-binding acquisition proposal to buy the company.

R1 RCM's stock rose $1.11 to $14 a share in recent trading.

The software company then formed a committee to evaluate potential offers, and opted for the deal from TowerBrook Capital Partners and CD&R.

The deal is expected to close by the end of the year.

Prior to Thursday's moves, R1 RCM's stock has risen 21.9% in 2024, compared to a 15.8% gain by the S&P 500 SPX.

-Steve Gelsi

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08-01-24 1006ET

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