Premier, a company dedicated to leveraging technology for the betterment of healthcare, has announced it has entered into a definitive agreement to be acquired for $2.6 billion. The purchasing entity is an affiliate of Patient Square Capital, a move that signals a new and transformative chapter for Premier’s future operations and strategic direction.
The terms of this acquisition have been thoroughly vetted and subsequently received the unanimous approval of Premier’s Board of Directors. Under the terms of this agreement, Premier’s current stockholders are entitled to receive a cash payment of $28.25 for each share they hold. This price point represents a considerable premium for shareholders, specifically 23.8% higher than Premier’s average stock price over the preceding 60-day period, as of September 5, 2025. This results in a financially favorable outcome for the company’s current shareholders.
The finalization of this transaction is anticipated to occur by the first quarter of 2026. However, this timeline is contingent upon several crucial conditions being met. These include obtaining the required approvals from Premier’s stockholders and satisfying various regulatory requirements that are standard for such large-scale corporate transactions. Additionally, other customary closing conditions, typically associated with acquisitions of this magnitude, must be fulfilled. A key point to note is that this acquisition is not contingent upon securing additional financing. This factor is expected to contribute to a smoother and more assured path towards its completion.
Before the public announcement of this acquisition, the Premier’s Board had declared a cash dividend of $0.21 per share of Class A common stock on August 18, 2025. This dividend was scheduled for distribution on September 15, 2025, to stockholders who were officially recorded as of the close of business on September 1, 2025. However, in light of the impending transaction and its implications, Premier will be suspending the declaration and subsequent distribution of common stock dividends in all future financial quarters. This decision is a direct and necessary consequence of the acquisition, reflecting the shift in the company’s financial strategy.
Upon the successful and complete execution of this transaction, Premier will undergo a fundamental transition, moving from its current status as a publicly traded entity to becoming a private company. This means that Premier’s common stock will cease to be listed or traded on any public stock exchange. This change signifies a comprehensive alteration in the company’s operational framework and its ownership structure, effectively bringing it under the private ownership and strategic direction of Patient Square Capital.
Advisors: Goldman Sachs and BofA Securities are serving as financial advisors, Wachtell, Lipton, Rosen & Katz is serving as legal counsel, and Joele Frank is serving as strategic communications advisor to Premier. Cravath, Swaine & Moore LLP is serving as legal advisor to the Transaction Committee of the Board of Directors. Kirkland & Ellis is serving as legal counsel, Ropes & Gray is serving as health care legal counsel, Jefferies LLC and Santander are serving as financial advisors, and Perella Weinberg Partners LP is serving as debt capital markets advisor to Patient Square.
KEY QUOTES:
“We are pleased to have reached this agreement and delighted that Patient Square recognizes and is committed to enhancing Premier’s integral role in the U.S. health care system. The Board unanimously approved this transaction, after careful consideration of a wide range of strategic alternatives in recent years and consultation with our financial and legal advisors. We believe this transaction is in the best interests of Premier and its stockholders and, upon closing, will deliver immediate and certain value to our stockholders, while simultaneously providing the Company with access to additional capital that can accelerate the support and services provided to members and other customers during this critical time in health care.”
Richard Statuto, Premier’s Board Chair
“Since going public in 2013, Premier has leveraged our access to capital to build unmatched supply chain expertise, world-class technology, and nationally recognized advisory capabilities that enable our members to continuously improve their cost, quality, and operational efficiencies. Now, as the health care landscape continues to rapidly evolve, transitioning to private ownership will once again enhance the Company’s financial flexibility and provide additional resources to accelerate the advancement and tech-enablement of our product portfolio, capitalize on emerging opportunities and continue pushing the envelope of innovation. I am proud of everything our team has achieved and look forward to building on our progress as we continue delivering real results for our members, contracted suppliers, customers and other stakeholders.”
Michael J. Alkire, Premier’s President and CEO
“We have long admired Premier as an innovator of essential services and products to its members, which are leading institutions and providers in the U.S. health care system. Our team sees tremendous opportunity for Premier to continue growing its differentiated portfolio in supply chain services, data and technology offerings, and consulting solutions that deliver value to patients, and we look forward to working closely with the team as a private company.”
Patient Square Founding Partner Neel Varshney, M.D.
