TPG Capital, the private equity platform of global alternative asset management firm TPG, announced a definitive agreement to acquire the remaining equity in Convey Health Solutions Holdings, Inc. (NYSE: CNVY), a leading healthcare technology and services company, in a deal implying an enterprise value of $1.1 billion. TPG, already the majority shareholder with approximately 75% ownership, will acquire all outstanding shares of Convey common stock not currently owned for $10.50 per share in cash. Convey Health provides technology and outsourced administrative solutions to health plans including enrollment and billing, supplemental benefits, agent and broker management, membership and financial reconciliation, compliance monitoring, and data analytics.
Payer Services EBITDA Multiples
According to the fairness opinion prepared in support of the transaction, estimated 2022 revenue and EBITDA are $407m and $82m, respectively, implying multiples of 2.7x revenue and 13.4x EBITDA. Convey's EBITDA is projected to increase to $124m by 2026, implying a compound annual growth rate (CAGR) of 10.9%.
Other Payer Services Deals
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The Scope Research Healthcare M&A Valuation Database currently has financial details for 131 population health and payer services deals going back to 2010, 78 of which include reported EBITDA multiples. The population health / payer services data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
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