R1 RCM, a provider of technology-driven solutions for healthcare billing and revenue collection, is set to be acquired by investment funds affiliated with TowerBrook Capital Partners and Clayton, Dubilier & Rice (CD&R) in an all-cash deal valued at approximately $8.9 billion. This acquisition will take R1 private, meaning its shares will no longer be traded on Nasdaq.

Under the agreement, TowerBrook and CD&R will purchase all outstanding common stock not already owned by TowerBrook for $14.30 per share. The financing for the transaction will come from a mix of committed debt and equity from the investment funds associated with both firms.

This acquisition follows a recent buyout proposal from New Mountain, R1's largest shareholder, which valued the company at nearly $6 billion. R1's CEO, Lee Rivas, expressed confidence in the deal, stating that TowerBrook has been a valuable long-term partner and shares R1's vision of becoming the leading automation platform for the healthcare provider industry.

The acquisition has received unanimous approval from a special committee of R1's board, which consists solely of independent directors tasked with exploring strategic options. Ian Sacks, managing director at TowerBrook, highlighted the firm’s long-term commitment to R1 since 2016 and expressed enthusiasm for further investments in R1’s operations to enhance customer performance and value.

The transaction is anticipated to close by the end of 2024, pending standard closing conditions, including stockholder and regulatory approvals. Ravi Sachdev, a partner at CD&R, emphasized R1's role as a trusted partner in healthcare technology and automation, looking forward to collaborating with TowerBrook and R1's team to elevate healthcare performance standards.