TPG Capital will acquire the shares of the publicly-listed company, which it previously didn’t own, for $10.5 per share in cash


TPG Capital to take full ownership of Convey Health Solutions. (Credit: Gerd Altmann from Pixabay)

Convey Health Solutions, a US-based healthcare technology and services company, has agreed to a $1.1bn takeover by its principal shareholder TPG Capital, the private equity platform of TPG.

Under the terms of the agreement, TPG Capital will acquire the shares of the publicly-listed Convey Health Solutions, which it previously didn’t own, for $10.5 per share in cash.

Convey Health Solutions offers clients healthcare-specific, compliant member support solutions by leveraging technology, engagement, and analytics.

Its administrative solutions for government-sponsored health plans are said to help in streamlining member interactions, assuring compliance, and underpinning end-to-end Medicare processes.

The company’s clients are claimed to be major health insurance plans and pharmacy benefit management firms in the US.

TPG Capital acquired Convey Health Solutions in September 2019 from New Mountain Capital for an undisclosed price.

In June 2021, the healthcare technology company went public through the initial public offering (IPO) route.

TPG partner Katherine Wood said: “Convey is a leading, integrated payor technology platform that enables efficiency and improves clinical and financial outcomes across the healthcare system. We look forward to continuing our partnership in its next chapter as a private company.”

Following the closing of the deal, Convey Health Solutions will become a privately-held company and will no longer be publicly listed or traded on the New York Stock Exchange (NYSE).

Convey Health Solutions’ board has approved the deal following a recommendation from a special committee that the offer from TPG Capital was in the best interests of the company and its shareholders.

Convey Health Solutions CEO Stephen Farrell said: “We believe this transaction provides substantial value, liquidity and certainty for our shareholders. Going forward, as a private company and with TPG’s support, we will have the ability to continue to make investments in the company and better serve our customers.”

The deal, which is subject to customary conditions, is anticipated to close in the latter half of this year.

TPG Capital, in its capacity as Convey Health Solutions’ principal shareholder has approved the deal. No other shareholder approval is needed for the closing of the deal.