R1 RCM is set to exit the public markets as private equity firms TowerBrook Capital Partners and Clayton, Dubilier & Rice finalize a deal to acquire the healthcare billing and collections company. This acquisition concludes a prolonged competition among various private equity firms seeking control over R1.

TowerBrook, which already holds a 36% stake in R1 through its partnership with the Catholic hospital system Ascension, is now teaming up with CD&R to purchase the remaining shares. The firms have agreed on a cash price of $14.30 per share, bringing the total valuation of R1 to approximately $8.9 billion.

This bidding war underscores the growing interest among private equity firms in revenue cycle management companies. These firms specialize in managing medical billing, collections, patient registration, and other administrative functions for hospitals and physician groups, making them attractive investment targets.