(Story updated at 12:33 p.m. ET)
Press Ganey, the healthcare consulting firm, announced Tuesday that it will be acquired by Swedish private equity firm EQT in a $2 billion deal.
Under terms of the agreement, the private equity firm will pay $40.50 a share for Press Ganey's stock. Press Ganey has a market value of $2.35 billion, according to a news release.
The acquisition is expected to close by the fourth quarter of 2016, though it does include a "go-shop" period during which Press Ganey can solicit other offers.
Both Press Ganey and EQT declined to provide further details on the pending deal.
This is the first U.S. acquisition by Stockholm-based EQT, which owns about 70 companies around the world.
Chris Raphaely, a partner at Philadelphia-based law firm Cozen O' Connor which represents providers, said EQT likely saw the U.S. healthcare industry as a worthwhile investment as it continues to evolve and as more data-driven research is mandated by the federal government.
EQT is also no stranger to dealing with heavily regulated industries, Raphaely said. He said the company's experience in industries like aviation will help EQT navigate U.S. rules and regulations. Press Ganey's leadership will also likely be maintained because EQT acquired the entire company, he added.
Boston-based Press Ganey raised about $233 million in May 2015 for its initial public offering.
It reported revenue of $318.7 million last year, a 13.2% increase from 2014. The company reported a net loss of $36.6 million last year, compared with net income of $15.6 million the year before.
In a news release, Press Ganey CEO Patrick Ryan said, “We are very excited about this transaction as it delivers value for our shareholders and allows Press Ganey to accelerate our investment in both acquisitions and product innovation that best serve our clients.”
Press Ganey monitors patient satisfaction through surveys and consultation. It has worked with more than 26,000 healthcare facilities in its more than 30-year history.
