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Vista takes Model N private for $1.25B

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Illustration: Sarah Grillo/Axios

Vista Equity Partners will take revenue management company Model N private for $1.25 billion.

Why it matters: This could open the floodgates for private equity-led dealmaking in health care IT.

Zoom in: Vista will acquire all outstanding shares of Model N common stock for $30 per share.

  • The all-cash transaction is expected to close in mid-2024.

Between the lines: Revenue optimization and management companies are lucrative investments for private equity, as most health systems outsource debt collection and other revenue functions.

  • RCM providers bill themselves as more efficient than in-house collections operations, investing heavily in updated tech stacks and leading to spiking demand from hospitals.

What we're watching: In March, publicly-traded R1 RCM told its two biggest shareholders to end talks on a potential take-private buyout. This deal could change that thinking.

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