According to an article by PE Hub, sponsors submitted initial bids last week, with at least one party bidding as high as$1,6bn in the first round according to sources familiar with the matter.
As reported by PE Hub, TransUnion is seeking a buyer for its health care business. The value of the business could be in the range of 20x the lower EBITDA range. Shares of TransUnion have spiked nearly 28 percent year-to-date.
Recent transactions for revenue cycle management companies in health care have varied: EQT, CPPIB and Bain Capital-backed Waystar bought e-Solutions from Francisco Partners for between US$l.3 billion and US$1.4 billion, implying a more than 20x EBITDA multiple.
TransUnion Healthcare provides revenue protection solutions and identifies opportunities to enhance patient access and post-service revenue recovery efforts. Its RCM solutions aim to identify and maximize reimbursement opportunities through the revenue cycle to reduce bad debt. The business serves more than 1,850 hospitals and health systems; helps more than 570,000 physicians and other US providers; connects to 880 payer that cover 98% of insured lives in the US. TransUnion Healthcare has been around for many years, although its MedData and Financial Healthcare Systems acquisitions in 2010 and 2011, respectively, where major catalysts for the company.
In more recent M&A activity TransUnion Healthcare grew through two acquisitions in 2018: The first was Healthcare Payment Specialists, which provides expertise and technology solutions to help medical care providers maximize Medicare reimbursements. It followed with the acquisition of Rubixis, a healthcare revenue cycle solutions company that helps providers maximize reimbursement from insurance payers.
There appears to be a perception that TransUnion Healthcare is no longer a TransUnion core business and would do better under new ownership.