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Mubadala Nears Deal to Buy Stake in Health Tech Firm Zelis

Signage for Mubadala at the company's pavilion at the Dubai Air Show in Dubai, United Arab Emirates, on Monday, Nov. 13, 2023. The 2023 Dubai Air Show kicked off on Monday with high expectations of large deals, continuing the prevailing theme of this year that’s seen airlines commit to huge orders. Photographer: Christopher Pike/Bloomberg (Christopher Pike/Bloomberg)

(Bloomberg) -- Mubadala Investment Co. is nearing a deal to acquire a minority stake in Zelis that values the health-care technology company at about $17 billion, people with knowledge of the matter said.

The Abu Dhabi wealth fund is putting the final touches on a deal with Zelis’s owners, Bain Capital and Parthenon Capital, according to the people. Mubadala has agreed to anchor a so-called minority recapitalization of Zelis, one of the people said. Other co-investors will be brought in during the coming weeks, the person said. 

Bloomberg News reported in September that Bain and Parthenon were in talks to sell a 20% to 25% stake in the company.

While talks with Mubadala are advanced they could still be delayed or falter, the people said, asking not to be identified discussing confidential information. Representatives for Bain and Mubadala declined to comment, while spokespeople for Parthenon and Zelis couldn’t immediately be reached for comment. 

Zelis operates a platform that helps digitize payments in health-care, where billions of dollars of spending is still disbursed using paper checks. The company works with hundreds of health payers to manage claims, negotiate with providers and save money.

In 2019, Bain invested in the merger of Parthenon-backed health-care payments technology companies Zelis Healthcare and RedCard Systems.

(Updates with details of investment in second paragraph.)

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