Busy Healthcare M&A Activity is Overshadowed by AT&T

​AT&T stole the spotlight in M&A news this week, but there was plenty of action in the healthcare space. KKR & Co. completed their second major deal this week in a leveraged buyout of Envision Healthcare; NaviHealth is selling 55% of their business to Clayton, Dubilier & Rice, a private equity firm, for an undisclosed sum; and Compass Professional Health Services, out of Dallas, was acquired by Alight Solutions for an undisclosed sum. 

• Last Monday, KKR & Co. announced the buyout of Envision Healthcare Holdings, Inc., of Greenwood Village, Colorado, for $9.9 billion. Envision specializes in healthcare transportation and management services for patient transportation. This is the second buyout in recent weeks for KKR. Two weeks ago, the private equity firm acquired BMC Software for $8.3 billion.

• On June 13th, NaviHealth, a Nashville, Tennessee-based provider of post-acute care management systems that optimize care plans, reached a definitive agreement with private equity firm Clayton, Dubilier & Rice. The agreement is for Clayton, Dubilier & Rice to purchase 55% of NaviHealth for an undisclosed sum. NaviHealth is currently owned in part by Cardinal Health, a publicly traded firm.

• Last Wednesday, Compass Professional Health Services, a Dallas-based firm, reached an agreement to be acquired by Alight Solutions for an undisclosed sum. Compass offers a software platform that can help understand and use their health benefits, coordinate care, and find cost-effective health care providers. The Blackstone Group, a private equity giant, is one of the current backers of Compass.

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• Last week, a judge ruled against the Department of Justice’s antitrust division in a case against AT&T, allowing the telecom and media giant to acquire Time Warner for roughly $80 billion. This deal is expected to open the flood gates for M&A activity this year with the speculation of minimal antitrust scrutiny.