(Bloomberg) -- TowerBrook Capital Partners has teamed up with Clayton, Dubilier & Rice to make a joint offer for R1 RCM Inc. that could kick off a bidding war for the health-care IT company.
The buyout firms are in advanced talks about finalizing their proposal to take the company private, according to a filing on Friday that confirmed a Bloomberg News report. They’ve pledged to make an offer that tops a $13.25-a-share bid made by New Mountain Capital, the filing shows.
Shares in R1 RCM rose as much as 3.4% on Friday. The stock was up 3.2% to $13.24 at 3:07 p.m. in New York, giving the company a market value of about $5.6 billion.
New Mountain and TCP-ASC, an investment vehicle jointly owned by TowerBrook and Ascension Health Alliance, previously discussed a joint bid for R1 RCM but failed to reach an agreement, according to a filing this month. At that point, New Mountain opted to go it alone with its offer.
R1 RCM is a so-called revenue cycle management company, which helps health-care providers get paid for the services they offer.
New Mountain is R1 RCM’s largest investor with a roughly 32% stake, data compiled by Bloomberg show. TowerBrook is R1 RCM’s second-largest shareholder with an interest of about 30%, the data show.
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