Blackstone Inc. has agreed to buy healthcare consulting firm Chartis Group from Audax Private Equity.
The buyout giant is making a majority investment through its core private equity strategy, according to a statement on Wednesday that confirmed an earlier Bloomberg News report. Financial terms weren’t disclosed.
The deal could value Chartis at about $1.4 billion, including debt, people familiar with the matter said, asking not to be identified discussing confidential information. Audax will remain invested in Chartis.
Chartis, founded in 2001, advises healthcare organizations such as academic medical centers, hospitals and provider networks. Boston-based Audax, which specializes in middle-market deals, first invested in Chartis in 2019.
“Across healthcare today, providers and payers are navigating an increasing number of complexities, from technological and regulatory changes to new clinical and economic models,” said Ram Jagannath, a senior managing director at Blackstone. “Chartis serves as a crucial partner for organizations seeking to evolve and grow without sacrificing quality of care.”
Since the Audax investment, Chartis has acquired smaller consulting firms including the Greeley Co. and Jarrard, Phillips Cate & Hancock.
“Blackstone shares our commitment to supporting industry leaders across the healthcare landscape as they strive to make care in the US more accessible, more affordable, more reliable, more equitable and more human for patients and caregivers,” said Ken Graboys, Chartis’s co-founder and chief executive officer.
The acquisition adds to Blackstone’s portfolio of more than 230 companies.
Lincoln International and Bank of America Corp. advised Chartis and Audax, while Goldman Sachs Group Inc. worked with Blackstone.
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