Patient Square to Acquire Premier Inc. for $2.6B Enhancing Healthcare Tech Services

Silicon Valley investment firm Patient Square Capital has agreed to acquire Premier Inc., a Charlotte-based purchasing and technology services company, for approximately $2.6 billion. Premier, which reported over $1 billion in revenue in its most recent fiscal year, had previously opted against a full sale, focusing instead on divesting certain business units and concentrating on its supply-chain, data, and technology segments. The acquisition is expected to enhance Premier's financial flexibility and accelerate the development of its technology-enabled product portfolio.

Founded in 2020 by veterans from KKR and KPMG, Patient Square Capital manages over $14 billion in healthcare assets, including behavioral health, telehealth, and Medicare Advantage-focused primary care companies. Patient Square views Premier as a key innovator with significant growth potential in supply chain services, data technology, and consulting solutions that aim to deliver patient value.

The deal, anticipated to close in early 2026 pending shareholder approval and regulatory clearances, includes a cash payment of $28.25 per Premier share. The transaction contains mutual termination fees, with Premier required to pay Patient Square $66 million if the deal is canceled under specific conditions, and Patient Square owing Premier about $169 million if it cannot complete the acquisition.

This acquisition aligns with broader healthcare M&A trends favoring technology-driven companies focused on value-based care, digital engagement, and personalized preventive care. Industry analysts note that ongoing labor cost pressures and reimbursement uncertainties are driving firms to seek mergers and acquisitions that improve cost efficiency, enhance cash flow, and boost patient engagement.

Premier's transition to private ownership under Patient Square is expected to provide strategic benefits amid the rapidly evolving healthcare landscape. The focus on integrating technology and data analytics reflects increasing market emphasis on value over volume in healthcare delivery and supply chain management. This strategic move converges with recent similar transactions, such as Sycamore Partners' acquisition of Walgreens Boots Alliance.