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PE Firm to Take Health Tech Co. Private in $1.1B Deal
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Shares of healthcare technology and services firm Convey Health Solutions Holdings Inc. traded 138% higher after the company reported it received a proposal from majority shareholder TPG Inc. to take the company private. TPG has offered to buy all outstanding shares in Convey that it does not already own for $10.50 per share in cash.

Healthcare technology and services company Convey Health Solutions Holdings Inc. (CNVY:NYSE), which provides purpose built technology and data analytics to deliver robust integrated, end–to-end healthcare solutions to its clients, just announced that "it has entered into a definitive merger agreement pursuant to which TPG Capital, the private equity platform of global alternative asset management firm TPG Inc. (TPG:NASDAQ) and Convey's principal shareholder, will acquire all of the outstanding shares of Convey common stock not currently owned by TPG or certain management and director shareholders for $10.50 per share in cash, representing an enterprise value of approximately $1.1 billion."

The firm stated that the $10.50 per share offering price is 99% higher than Convey Health Solutions Holdings' 30-day trailing volume weighted average share price and added that the purchase price represents about a 143% premium over the shares closing price on the prior trading day, Friday, June 17, 2022.

The company advised that its Board of Directors had assembled a special committee comprised of independent directors and outside legal and financial advisors to review the offer. The firm indicated that based of the findings of the committee the company's Board elected to approve the transaction.

Convey Health Solutions' CEO Stephen Farrell stated, "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."

Katherine Wood, Partner at TPG, commented, "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."

The firms advised that the transaction has already been approved by TPG, Convey's principal shareholder. Therefore, the report stated that no additional common stockholder approval is required. The take-private transaction is expected to close in H2/22 subject to ordinary closing conditions. When the transaction is finalized, Convey will become a private enterprise and its share will no longer be publicly traded.

Convey is a healthcare technology and services firm headquartered in Fort Lauderdale, Fla. The firm's healthcare solutions are engineered to leverage proprietary technology and processes in order to drive health plan growth and member engagement. The firm uses its expertise to assist its customers with healthcare-specific, compliant member support solutions capable of providing analytics and enhanced engagement. The company listed that "its administrative solutions for government-sponsored health plans help to optimize member interactions, ensure compliance, and support end-to-end Medicare processes." Convey's customers include large health insurance plan providers and pharmacy benefit managers. In addition, the firm helps millions of individuals covered by Medicare Advantage and Part D to navigate complex plan options.

TPG is an alternative asset management firm with approximately $120 billion of assets under management. The firm has a market cap of about $7.4 billion and oversees investments in more than 280 companies in over 30 countries. The company has an investment and operational staff of about 500 people in teams stationed throughout 12 offices globally.

Convey Health Solutions began the day Tuesday with a market cap of around $316.1 million with approximately 73.2 million shares outstanding. CNVY shares opened almost 140% higher at $10.30 (+$5.98, +138.43%) over Friday's $4.32 closing price. The stock traded between $10.265 and $10.34 per share and closed at $10.30 (+$5.98, +138.43%).

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