The US investment company Blackstone and the Canadian pension fund Omers are working on the divestiture of two large healthcare companies with a total value of more than USD 4 billion. According to people familiar with the matter, Blackstone is seeking to sell its majority stake in software provider HealthEdge, while Omers is putting the US network Premise Health up for sale.

Blackstone hopes to achieve a total volume of over $2.5 billion for health insurance specialist HealthEdge. At the same time, Omers wants to sell its stake in healthcare provider Premise Health, which operates around 800 health centers in 46 U.S. states, for about $2 billion. Both transactions are still in an early stage and could be scrapped if potential buyers do not meet the desired price expectations. The sale intentions reflect an industry-wide trend: High interest rates have hampered many private equity transactions in recent years. Numerous funds have held their investments in the healthcare sector longer than planned, indicating an impending wave of exits, according to consulting firm Bain & Company. Currently, more than 2,700 healthcare companies have been parked in private equity portfolios for six or more years. HealthEdge, in which Blackstone acquired a majority stake for around $700 million in 2020, has recently generated an estimated profit (EBITDA) between $100 and $120 million. The company offers modern software solutions that enable health insurers to efficiently manage their insurance plans and claims. Premise Health, in turn, acquired by Omers in 2018 for just over $1 billion, is one of the largest networks for so-called "Direct Access Care" in the U.S. and serves more than 2,500 employer clients. If both sales are successful, it is likely to be a profitable exit for Blackstone and Omers, as the investments have demonstrably increased in value. Market observers expect that other private equity firms will especially compete for the purchase.