Patient Square Capital to Acquire Premier Inc. in $2.6 Bn Deal

The deal, announced Monday, will take the group purchasing, technology, and intelligence organization private.

Charlotte, North Carolina-based Premier Inc. has signed a definitive agreement for a $2.6 billion acquisition by an affiliate of healthcare investment firm Patient Square Capital. 

The deal, announced Monday, will take the group purchasing, technology, and intelligence organization private.

The transaction, subject to shareholder and regulatory approvals, is expected to close by the first quarter of 2026. Premier stockholders are set to receive $28.25 per share in cash, a 23.8% premium over the 60-day volume-weighted average price as of September 5. The agreement is not subject to financing conditions. As part of the transaction, Premier has suspended its recently announced dividend and future dividends.

Premier President and CEO Michael J. Alkire said, “Since going public in 2013, Premier has leveraged our access to capital to build unmatched supply chain expertise, world-class technology, and nationally recognized advisory capabilities that enable our members to continuously improve their cost, quality, and operational efficiencies. Now, 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 serves more than two-thirds of U.S. healthcare providers, representing $84 billion in group purchasing power. It maintains over 3,000 contracts with 1,400 suppliers and manufacturers. The company had previously divested its non-healthcare group purchasing business for about $800 million in cash.

Neel Varshney, M.D., founding partner of Patient Square Capital, said his firm “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, and we look forward to working closely with the team as a private company.”

Premier recently reported an 11% year-over-year net revenue decline and a 30% decline in adjusted earnings per share for fiscal 2025, though leadership described the results as better than expected. Fiscal 2026 guidance also projects lower net revenue and earnings.

Premier board chair Richard Statuto said, “The Board unanimously approved this transaction, after careful consideration of a wide range of strategic alternatives in recent years and consultation with our financial and legal advisors. We believe this transaction is in the best interests of Premier and its stockholders and, upon closing, will deliver immediate and certain value to our stockholders, while simultaneously providing the Company with access to additional capital that can accelerate the support and services provided to members and other customers during this critical time in healthcare.”

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