Swedish private equity firm EQT said Monday it has agreed to acquire a controlling stake in healthcare technology services company GeBBS Healthcare Solutions from Indian PE firm ChrysCapital.
EQT didn’t disclose the financial details of the deal but a person close to the development told VCCircle that it would pay over $800 million (Rs 6,716 core) for the entire stake held by ChrysCapital.
ChrysCapital had acquired a little less than a 74% stake in GeBBS Healthcare in 2018 for $140 million, with the company’s founders retaining the remaining stake.
The deal with EQT means ChrysCap is exiting with a multiple on invested capital of 5.7x in less than six years. The transaction is expected to close in Q4 2024.
“Healthcare technology is a key investment theme for EQT. GeBBS has developed a robust business with a clear focus on supporting healthcare providers through industry leading solutions,” said Hari Gopalakrishnan, Partner in the EQT Private Capital Asia advisory team and Head of EQT Private Capital India.
The deal follows three investments by EQT in India last year. EQT acquired Baring Private Equity Asia in 2022 to expand its business in the continent. It later renamed the Asian unit as EQT Private Capital Asia.
Last year, the PE firm bought a majority stake in digital engineering company Indium Software in December, acquired Indira IVF in July and teamed up with ChrysCapital to purchase education finance company Credila from HDFC in June.
EQT said that with the latest transaction, BPEA Private Equity Fund VIII is expected to be 70-75% invested. The fund has a corpus of $11.2 billion. The PE firm is now raising BPEA Private Equity Fund VIII, aiming to mop up as much as $12.5 billion.
ChrysCapital manages $5 billion across nine PE funds, and $250 million in Clarus, its public markets fund. It has made over 100 investments through its PE funds since 1999. ChrysCapital has fully exited its first six PE funds and realized over $7 billion from more than 80 exits.
Established in 2005, GeBBS Healthcare provides revenue cycle management services and risk adjustment solutions to hospital systems and payers in the US. The company has over 13,000 employees with delivery centres in India, the Philippines, the US, and the Dominican Republic.
Cooley and Shardul Amarchand Mangaldas served as the legal counsel to ChrysCapital for the transaction, EY was the accounting advisor, and PwC was the tax advisor.
Ropes & Gray, JSA Law, Deloitte Touche Tohmatsu, and PricewaterhouseCoopers advised EQT.
