It has hired JP Morgan and Bank of America to run the sale process, which will be launched by early next year, they said.
“AGS is expected to post FY25 Ebitda of $60 million and the valuation will be in the range of 12-13 times that,” said one of the persons, who did not wish to be identified.
The company generates annualised revenues of about $150 million.
Bloomberg was the first to report, earlier this month, about EQT Partners’ plans to sell AGS Partners.
When contacted, an EQT Partners spokesperson declined to comment.AGS Health is a technology-enabled revenue cycle management (RCM) company that provides financial clearance, financial management and clinical coding solutions and services to healthcare providers and vendors across the US. It has 12,000 employees across multiple offices in India, Manila and the US.EQT Private Capital Asia, formerly known as Baring Private Equity Asia, acquired AGS Health in 2019 for $320 million (about ₹2,300 crore).
AGS Health serves more than 150 customers spanning a variety of care settings and specialities, including nearly 50% of the 20 most prominent US hospitals and 40% of the nation’s 10 largest health systems, according to its website. Its clients include laboratory testing services company Aegis Sciences, American Addiction Centers, ApolloMD, Auburn Community Hospital, DocuCare LLC, OhioHealth, Richmond University Medical Center and Vanderbilt University Medical Center.
Early this month, EQT Partners acquired AGS Health’s competitor GeBBS from home-grown fund ChrysCapital for $860 million. It pipped Asia-focused private equity fund Hillhouse Investment, paying about 12-13 times the Ebitda multiple for the acquisition, according to people with knowledge of the matter.
AGS Health was established in 2011 with its first service centre in Chennai, targeting the increasing demand for RCM solutions. In India, it has operations in Vellore, Chennai, Hyderabad, Tirupati and Jaipur.
Last year, the company expanded its business with the acquisition of the India-based patient access outsourcing business unit of the Florida-based healthcare technology company Availity, along with its Intelligent Authorization (formerly known as AuthPal) prior authorisation automation technology.
With the acquisition of GeBBS, EQT Partners currently owns four healthcare IT services companies in India – CitiusTech, AGS Health, Sagility and GeBBS.
Besides AGS Health, EQT Partners is also exiting its healthcare business process management (BPM) services company Sagility (formerly Hinduja Global Solutions Healthcare LLC).
In July, Sagility India filed a draft red herring prospectus with the capital markets regulator for fundraising through an initial public offering. Sagility BV, an affiliate of EQT Private Capital Asia, is the promoter and shareholder in Sagility India. Colorado-based Sagility, which has more than 35,000 employees, provides BPM services to the healthcare segment in the US.
In 2021, EQT Partners acquired Hinduja Global Solutions, the BPM entity of Hinduja Group, for an enterprise value of ₹ 9,000 crore (about $1.2 billion.) in one of the largest private equity deals in the outsourcing segment.
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