Investing.com-- Global private equity firms Blackstone (NYSE:BX), Hillhouse Investment, TPG (NASDAQ:TPG), and General Atlantic have submitted non-binding bids to acquire AGS Health, valuing the healthcare IT services provider at around $1 billion, the Economic Times reported on Thursday citing sources familiar with the matter.
EQT (ST:EQTAB) Partners, the Swedish investment firm that owns AGS Health, has hired JP Morgan and Bank of America to manage the sale, the report stated.
EQT, which acquired AGS Health for $320 million in 2019, is expected to formally launch the process early next year, the report said.
AGS Health employs 12,000 people across India, Manila, and the U.S., serving more than 150 clients.
This development underscores the growing interest of private equity firms in healthcare business process outsourcing (BPO) companies, ET reported.
The global healthcare BPO market is projected to expand from $152 billion in 2022 to $259 billion by 2028, driven by the need for effective cost-reduction strategies in the face of rising healthcare costs, according to a BCC Research study cited by the Economic Times.