CHARLOTTE, N.C.--(BUSINESS WIRE)--Premier Inc. (NASDAQ: PINC), a leading healthcare improvement company, reached an agreement to acquire Innovatix, LLC and Essensa Ventures, LLC, two continuum of care group purchasing companies for $325 million. Premier currently owns a 50-percent interest in Innovatix. GNYHA Holdings LLC, an affiliate of the Greater New York Hospital Association (GNYHA), currently owns the other 50 percent of Innovatix and 100 percent of Essensa.
Innovatix is a leading supply chain solutions company and group purchasing organization (GPO) serving more than 32,000 facilities in multiple classes of trade, including senior living facilities (assisted living, continuing care retirement communities, independent living and skilled nursing), independent medical oncologists and pharmacies (home infusion, long-term care, mail order and retail). Essensa is a national GPO delivering procurement solutions and supply chain efficiencies to classes of trade not served by Innovatix, including ambulatory care, surgery centers, imaging centers, behavioral/mental health clinics and clinical laboratories. Both Innovatix and Essensa specialize in group purchasing in the continuum of care market, or institutional healthcare providers that are outside the acute care hospital or health system.
“This transaction complements Premier’s core Supply Chain Services offering by expanding and consolidating our GPO capabilities into the high-growth continuum of care market,” said Susan DeVore, president and CEO of Premier. “As long-standing business partners with GNYHA, we will integrate these assets and customer segments with our existing continuum of care business and expect to achieve even greater scale for top-tier pricing in both the acute and non-acute markets. These capabilities are critical to address the changing needs of healthcare, where the drive toward population health management and lower cost of care requires a cross-continuum reach.”
Premier expects to utilize its existing credit line to purchase the remaining 50 percent stake in Innovatix and 100 percent of Essensa from GNYHA for $325 million. The transaction is expected to close before the end of the 2016 calendar year, subject to customary closing conditions. The purchase agreement also provides that Premier will pay GNYHA Holdings a total of up to an additional $43 million if the acquired companies achieve certain performance targets in fiscal 2017. Based on information provided by GNYHA Holdings, in the 12 months ended June 30, 2016, the acquired businesses generated approximately $88 million in revenue and $50 million in net income. The combined businesses have also experienced double-digit compound annual revenue growth for the past three years.
About Premier Inc.
Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement company, uniting an alliance of approximately 3,750 U.S. hospitals and 130,000 other provider organizations. With integrated data and analytics, collaboratives, supply chain solutions, and advisory and other services, Premier enables better care and outcomes at a lower cost. Premier, a Malcolm Baldrige National Quality Award recipient, plays a critical role in the rapidly evolving healthcare industry, collaborating with members to co-develop long-term innovations that reinvent and improve the way care is delivered to patients nationwide. Headquartered in Charlotte, N.C., Premier is passionate about transforming American healthcare. Please visit Premier’s news and investor sites on www.premierinc.com.
About Innovatix and Essensa
Innovatix is a leading supply chain solutions company and group purchasing organization (GPO) serving more than 32,000 facilities in multiple classes of trade, including senior living facilities (assisted living, continuing care retirement communities, independent living and skilled nursing), independent medical oncologists and pharmacies (home infusion, long-term care, mail order and retail). Currently, Innovatix is jointly owned by the GNYHA Holdings and Premier, with each holding a 50% interest. Essensa is a national GPO delivering procurement solutions and supply chain efficiencies to classes of trade not served by Innovatix, including ambulatory care, surgery centers, imaging centers, behavioral/mental health clinics and clinical laboratories. Both Innovatix and Essensa specialize in group purchasing in the continuum of care market, or institutional healthcare providers that are outside the acute care hospital or health system.
