Apollo Global Management said on Friday it had invested $785m in GI Alliance, as part of a deal that values the gastroenterology-care platform at $2.2bn.
GI said the buyout firm would take two seats on its board after the deal is closed, expected in the third quarter this year, adding it was a “non-control investment” from Apollo.
Dealmaking in the healthcare space has picked up in recent months even as rate hikes and inflation pressures reduce corporate appetite for buyouts. Private equity companies have also snapped up stakes, seeking to take advantage of relatively cheaper valuations.
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Apollo has invested in GI from funds managed under its hybrid value business, a spokesperson for the company said.
Under the deal, physician owners of GI who already have a 70% ownership in the company will also buy back the minority stake held by investment firm Waud Capital Partners.
GI’s physicians operate across 14 U.S. states including Missouri, Mississippi, Oklahoma and Texas.
Source: Reuters
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