The private equity firm that owned Press Ganey for about three years has officially sold the healthcare consultancy to a new group of private equity firms.
EQT Partners, which bought Press Ganey in a $2 billion public-to-private transaction in 2016, sold the company on Friday to funds managed by affiliates of Ares Management Corp. and Leonard Green & Partners, the companies announced. A news release did not disclose financial terms, and neither Press Ganey nor its new owners responded to requests for comment.
Press Ganey's executive chairman, Patrick Ryan, said in a statement that the company appreciates the "tremendous partnership" it had with EQT and is excited to work with Ares and LGP.
"Today marks another milestone in Press Ganey's journey toward achieving safe, high quality, patient centered care," he said.
In announcing plans to sell Press Ganey last month, EQT wrote it would be the first portfolio company exit by EQT's U.S. private equity division.
Press Ganey is perhaps most widely known for monitoring patient satisfaction through its surveys. The company currently helps more than 41,000 healthcare facility clients improve safety, quality and patient experience.
The companies buying Press Ganey likely recognize that the consultancy is benefiting from the new surge of demand among providers and employers to implement bundled payments and centers of excellence, said François de Brantes, senior vice president of commercial business development at Remedy Partners.
Quality data—the linchpin of those efforts—has suddenly become crucial, but reliable sources are lacking. That's where Press Ganey comes in, de Brantes said.
"You've got the field increasingly trying to identify who's doing a good job, because that's the condition in which you'll be a center of excellence," he said.
The purchase included investment from GIC, British Columbia Investment Management Corp. and a wholly owned subsidiary of the Abu Dhabi Investment Authority.