Omega is a leading technology-enabled healthcare management solutions provider. Terms of the transaction were not disclosed, said an Ontario Teachers’ press release.
ET first reported on 20th December that Ontario Teachers’ is all set to acquire a majority stake in Omega. Ontario Teachers’ is looking to invest about $700-800 million to buy out existing investor Everstone Capital, valuing Omega at $1.8 billion, ET reported.
Omega has two main shareholders–Goldman Sachs Asset Management, which holds about 60%, and Everstone Capital, an Asia-focussed private equity fund that has a 33% stake. The management team owns around 7% of the company.
A leading revenue cycle management (RCM) player, the company has 35,000 employees at 14 delivery centres in the US, India, Colombia and the Philippines.
Founded by Gopi Natarajan and Anurag Mehta in 2003 in the US,
Omega Healthcare works with healthcare institutions to empower them to deliver exceptional care while enhancing financial performance.
Omega aims to help its clients increase revenues, decrease costs, and improve the overall patient experience through their comprehensive portfolio of technology-enabled and clinically-led solutions, it added.
“While the U.S. healthcare industry continues to face complexities, we see considerable opportunity in technology-driven solutions that improve efficiencies and reduce costs for healthcare providers. We’re excited to partner with Goldman Sachs Alternatives and work alongside Anurag, Sumit and the entire Omega team to support the company’s continued growth,” said Greg Nielsen, Senior Managing Director, Digital & IT Services, at Ontario Teachers’.
Goldman Sachs Alternatives has been an investor in Omega since 2019.
“It is a privilege to work with the Omega team and witness up-close the drive and dedication to deliver outstanding outcomes for their customers. Ontario Teachers’ decision to join us as an investment partner is a testament to Omega management team’s vision and exceptionality. We are excited to see what we can achieve together,”said Harsh Nanda, Managing Director and Head of Technology Private Equity within Goldman Sachs Alternatives.
Goldman Sachs & Co. LLC and TripleTree acted as co-lead financial advisors to Omega, and Weil, Gotshal & Manges served as legal counsel to Omega.
“This partnership reaffirms our commitment to leverage our unmatched domain expertise and our unique market-leading solutions to empower our clients. We look forward to accelerating development of our offerings across the Provider, Payer, and Pharma markets, to enable our customers to operate more effectively. I am incredibly proud of our management team for their relentless pursuit of excellence and grateful to our customers for their unwavering support,” said Anurag Mehta, the Co-Founder and CEO of Omega.
Ontario Teachers’ Pension Plan Board (Ontario Teachers’) is a global investor with net assets of $178 billion as at June 30, 2024.
