Swedish investment house EQT on Monday said it has agreed to buy a controlling stake in GeBBs Healthcare Solutions, a healthcare business process outsourcing (BPO) company, from private equity firm ChrysCapital.
GeBBS, founded in 2005 by Vijay Singh, specialises in revenue cycle management, health information management (HIM), and medical billing services, and offers a range of services designed to help US-based healthcare providers, including hospitals, health systems, and physician practices, improve their financial performance by optimising revenue cycle processes and ensuring accurate coding and billing practices.
While the deal value was not disclosed, the Economic Times in April reported that a potential deal is likely to value GeBBS at $800 million to $1 billion, marking a windfall for ChrysCapital which acquired an 80% stake in GeBBS in 2018 for $140 million at a valuation of $175 million.
The transaction is expected to close in the fourth quarter of 2024.
After ChrysCapital’s acquisition, GeBBS expanded its portfolio through strategic acquisitions, including Aviacode in 2021, CPa in 2023, MRA in 2023, and CCD Health in 2024.
EQT is expected to support GeBBS’ management team in the next phase of its growth strategy by expanding into new customer segments, strengthening in-house technology capabilities, and driving further M&A.
In the healthcare BPO space, GeBBS competes with industry giants like Wipro, IBM, Cognizant, and Accenture.
“Healthcare technology is a key investment theme for EQT,” Hari Gopalakrishnan, Partner in the EQT Private Capital Asia advisory team said, adding, “We see strong alignment between GeBBS’ growth ambitions and EQT’s experience in creating long-term value.”
With GeBBS’ transaction, BPEA Private Equity Fund VIII is expected to be 70-75% invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).
Other investments by EQT in the healthcare space in India include AGS Health, AIG Hospitals, Citius Tech, Indira IVF, and Sagility.
