Temasek Holdings, a state investment firm based in Singapore, has acquired a majority stake in Global Healthcare Exchange LLC (GHX) which provides connected, intelligent supply chain management technology and services to the healthcare industry.
Financial details of the transaction were not disclosed, but a Wall Street Journal report states the transaction value at US$1.8 billion.
JP Morgan Securities, Credit Suisse Securities, and Cleary Gottlieb Steen & Hamilton are advising Temasek, while Thoma Bravo’s financial advisor on the transaction is Goldman Sachs.
As part of the agreement, private equity firm Thorma Bravo which acquired GHX in 2014, will retain a minority interest. Meanwhile, the current GHX senior management team will also continue to lead the company.
Global Healthcare Exchange, headquartered in Louisville Colorado, has 630 employees in the United States, Canada, and Europe. It is known for automating healthcare supply purchasing which has helped reduced paperwork, redundancy, and other waste in procurement.
This is through providing health care providers and suppliers an electronic trading exchange that delivers procurement and accounts payable automation.
Besides, the healthcare provider also offers contract and inventory management, vendor credentialing and management, business intelligence, payment management, and other supply chain-related tools and services.
GHX aims to connect and create the healthcare industry’s largest collaborative community of trading partners, including providers, suppliers, distributors, and group purchasing organizations (GPOs), in order to improve their business processes based on more timely, accurate data, and greater automation.
“GHX maintains a strong position in North America, and Europe with solutions that span the breadth of the healthcare supply chain,” said Bruce Johnson, the CEO and president of GHX.
In fact, more than 22,000 hospitals, clinics, and home healthcare groups which currently use GHX software.
“The addition of Temasek to GHX’s ownership will help us continue to grow and deliver on our commitment to drive improved efficiency and results in health care,” Johnson added.
While Temasek’s deal represents a significant equity investment, GHX’s priority remains to deliver solutions that have a measurable positive impact on customer’s business and their patients.
“Our commitment to working collaboratively with existing management, strengthening the operational process, and generating strong returns for our companies and investors is a practice we look forward to continuing as a minority partner in GHX with Temasek,” said Seth Boro, the managing partner of Thoma Bravo.
By Vivian Foo, VCNewsNetwork