R1 Announces Sale of its Emergency Medical Services Business to Sarnova Holdings, Inc.
CHICAGO, July 20, 2020 (GLOBE NEWSWIRE) -- R1 RCM Inc. (NASDAQ:RCM), a leading provider of technology-enabled revenue cycle management (RCM) services to healthcare providers, today announced the sale of its emergency medical services (EMS) business, including EMS Revenue Cycle Management and Electronic Patient Care Reporting, to Sarnova Holdings, Inc., a leading specialty distributor of healthcare products in the EMS and acute care markets and a subsidiary of Patricia Industries. Sarnova will purchase the EMS business for approximately $140 million.
The transaction reflects R1’s commitment to maximize investments to drive innovation and growth of its leading revenue cycle management platform serving the provider end market. The transaction is expected to close in the third quarter of 2020, subject to regulatory approval and other closing conditions.
“The sale of the EMS business aligns with our strategic vision and focus on delivering best-in-class revenue cycle management solutions that will help health systems and physician groups improve both financial performance and patient experience,” said Vijay Kotte, executive vice president, physician services at R1. “We are confident that Sarnova is the right home for the EMS business and know they have the expertise to further grow and develop industry-leading solutions for this market.”
Evercore Group LLC acted as financial advisor and Winston & Strawn LLP acted as legal advisor to R1. Robert W. Baird & Company acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal advisor to Sarnova Holdings, Inc. and Patricia Industries.
About R1 RCM
R1 RCM is a leading provider of technology-enabled RCM services which transform and solve revenue cycle performance challenges across hospitals, health systems and group physician practices. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. To learn more, visit: r1rcm.com.
Sarnova is the leading specialty distributor of healthcare products in the emergency medical services (EMS) and acute care markets. The company is comprised of four major business units: Bound Tree Medical, Cardio Partners, Emergency Medical Products and Tri-anim Health Services. Sarnova is a company of Patricia Industries, a part of Investor AB, which makes significant investments in best-in-class companies with strong market positions, brands and corporate cultures. For more information, visit www.sarnova.com
Forward Looking Statements
This press release includes statements that may constitute “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements about future events and relationships, plans, future growth and future performance, including statements about the proposed divestiture of the EMS business, the anticipated benefits of the proposed divestiture of the EMS business, and the expected timing of the proposed divestiture of the EMS business, are forward-looking statements. These statements are often identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “designed,” “may,” “plan,” “predict,” “project,” “would” and similar expressions or variations, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events as of the date hereof and any forward-looking statements contained herein should not be relied upon as representing our views as of any subsequent date. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to risks related to the satisfaction of the conditions to closing the divestiture of the EMS business in the anticipated timeframe or at all, risks that the expected benefits from the proposed divestiture of the EMS business will not be realized or will not be realized within the expected time period, and significant transaction costs, as well as the factors discussed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2019, our quarterly reports on Form 10-Q and any other periodic reports we file with the Securities and Exchange Commission.
R1 RCM Inc.