Charlotte-based Premier Inc. reached an agreement to acquire Innovatix LLC and Essensa Ventures LLC – two health care purchasing organizations – for $325 million.
The transaction, announced Monday, is expected to be completed before the end of 2016, subject to customary closing conditions. In the 12 months ended June 30, 2016, the two acquired companies generated approximately $88 million in revenue and $50 million in net income.
Currently, Premier owns 50 percent of Innovatix. GNYHA Holdings LLC an affiliate of the Greater New York Hospital Association, owns the other 50 percent of Innovatix and 100 percent of Essensa.
Both Innovatix and Essensa are care group purchasing organizations (GPOs) serving institutional health care providers that are outside the acute care hospital or health system.
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“This transaction complements Premier’s core supply chain services offering by expanding and consolidating our GPO capabilities into the high-growth continuum of care market,” said Susan DeVore, president and chief executive officer of Premier, in a statement.
Charlotte-based Premier is a health care company that works with approximately 3,750 U.S. hospitals and 130,000 other providers. Net revenue stood at $1.16 billion in fiscal year 2016, up 15 percent from the prior year. Net income of $235.2 million remained relatively unchanged.
In a research report Monday, Canaccord Genuity analyst Richard Close said he viewed the transaction favorably because it expanded Premier’s “outside of the hospital segment and into the faster-growing alternate site segment” and because it gives the company more exposure to the pharmacy services business.
Premier’s annual meeting will be held on Friday, Dec. 2, at 10 a.m. Eastern time, at its corporate headquarters, located at 13034 Ballantyne Corporate Place, in Charlotte.
The Securities and Exchange Commission filing can be found here.
This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism