Blackstone has emerged as the frontrunner in the potential $1bn acquisition of AGS Health, a healthcare revenue cycle management firm currently backed by EQT, according to sources familiar with the matter.

Talks are at an advanced stage, and while a final agreement has not been confirmed, Blackstone has reportedly pulled ahead of other bidders. Both firms have declined to comment.

Founded in 2011 in Chennai, AGS Health provides outsourced billing, coding, and revenue cycle services for US healthcare systems. The company was initially acquired by Baring Private Equity Asia in 2019, before becoming part of EQT’s portfolio through its $7.5bn takeover of BPEA in 2022.

Since then, AGS has shifted its global headquarters to Washington, DC, launched operations in the Philippines, and grown to over 12,000 employees. It currently services more than 150 hospitals and healthcare systems across the United States.

The proposed sale is part of EQT’s broader strategy to realise gains from legacy BPEA investments and would mark a significant exit for its Asia platform. It also reflects heightened private equity interest in healthcare business process outsourcing and tech-enabled solutions, driven by increasing operational complexity and digital transformation in the US healthcare market.

Source: Bloomberg

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