Kirkland & Ellis advised healthcare services provider R1 RCM Inc. (NASDAQ: RCM) on a definitive agreement to be acquired in an all-cash transaction with an enterprise value of $8.9 billion by investment funds affiliated with investment management firm TowerBrook Capital Partners and private investment firm Clayton, Dubilier & Rice (CD&R). R1 is a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. The transaction was announced on August 1, 2024.
TowerBrook is currently the owner of approximately 36% of the company’s outstanding shares of common stock, including the warrant held by TowerBrook. Under the terms of the agreement, TowerBrook and CD&R will acquire all the outstanding common stock that TowerBrook does not currently own for $14.30 per share, which represents a premium of approximately 29% to the company’s unaffected closing price on February 23, 2024, the last full trading day before private equity firm New Mountain Capital publicly disclosed an initial non-binding acquisition proposal. The transaction has been unanimously approved by a special committee of the R1 Board of Directors and is expected to close by the end of the year subject to customary closing conditions.
