MedAssets, one of the nation's largest group purchasing organizations, said it will spend $142 million to acquire Sg2, a Skokie, Ill.-based healthcare analytics
, market intelligence and clinical consulting firm.
It's the first deal that MedAssets has announced since it acquired the Broadlane Group
, another GPO, in 2010 for $850 million. The Alpharetta, Ga.-based company also offers revenue-cycle management
services and software to healthcare providers.
Sg2's clients include hospitals and health systems as well as drug and medical-device manufacturers. Market expansion may be one factor driving the deal. Michael Cherny, an analyst for ISI Group, said in a research note that Sg2 may be able to expand its client base with access to MedAssets' hospitals members.
Hospitals are increasingly seeking sophisticated data and intelligence tools to better predict costs and care trends.
“In today's rapidly evolving healthcare environment, industry leaders cannot rely alone on analysis of past performance or even current best practices to drive strategic business decisions and adequately prepare for future market dynamics,” John Bardis, MedAssets' CEO, said in a news release announcing the deal.
Hospitals' interest in paying for and accessing better data prompted Premier, another large GPO, to file an initial public offering
last year in an effort to raise capital that would support investment in data and intelligence tools. Premier recently announced plans to acquire TheraDoc, a clinical surveillance company, for $117 million.
The deal to acquire Sg2 is expected to close by mid-October. The company is holding an investor day today in New York. Follow Jaimy Lee on Twitter: @MHjlee