Last week Blackstone Group entered into a definitive agreement to acquire a controlling interest in Emdeon Inc., a US-based provider of revenue and payment cycle management solutions operating in the healthcare sector. The deal is valued at approximately $3bn. In 2008, Emdeon Inc. was acquired by Hellman & Friedman and General Atlantic for $575mn and Hellman & Friedman will still retain a significant minority interest in the firm.
Virginia-based Datatel, a portfolio company of JMI Equity and Hellman & Friedman, last week announced the acquisition of SunGard Higher Education in a deal valued at $1.775bn. In December 2009 the two aforementioned private equity firms acquired Datatel for $570mn.
This week Cargill Inc., an international producer and marketer of food, agriculture, financial and industrial products and services, entered into a binding agreement to acquire private equity-backed Provimi for an enterprise value of € 1.5bn. Provimi was acquired in January 2007 by London-based PE firm Permira, for €1.26bn which includes the assumption of debt. Permira realised a 2.3 times return on what it originally invested from the sale to Cargill Inc.
Another notable exit in the past week came in the sale of private equity-backed Insight Communications Company, Inc. to Time Warner Cable for $3bn. Carlyle Group had taken Insight Communications Company private in December 2005 for $2.1bn, paying $10.70 per share.