Press Ganey, the U.S. 'Dianping' for Healthcare, Files IPO Prospectus Following $4B+ Acquisition

VCBeat (WeChat ID: vcbeat) has learned that healthcare company Press Ganey Associates (“Press Ganey”) recently entered into a definitive agreement under which it will be acquired by a private equity fund and managed by affiliates of Leonard Green & Partners and Ares Management Corporation.

The specific transaction amount for this acquisition was not disclosed, but news reports indicated that the deal value exceeded $4 billion. The transaction is expected to be completed in the third quarter of 2019.

Press Ganey, founded in 1985 and headquartered in Indiana, USA, is a healthcare company. The company is dedicated to providing healthcare organizations with safe, high-quality patient experience and workforce solutions to help them improve operational performance.

In 2016, Press Ganey was acquired by the investment firm EQT Partners. Following the acquisition, Press Ganey achieved rapid revenue growth through multiple strategic acquisitions and strengthened its position in the U.S. healthcare market. Meanwhile, with support from EQT Partners, Press Ganey launched an integrated suite of transformation solutions and developed the digital platform PGO 2.0, which enables cross-domain analytics across the entire care continuum.

Press Ganey is renowned for collecting patient satisfaction surveys and is currently the most widely used outpatient satisfaction survey provider in the United States. Similar to how hotels gather guest feedback, the company conducts surveys among patients after discharge, covering aspects such as ward cleanliness and whether doctors performed hand hygiene. Furthermore, the company publishes this data online, allowing prospective patients to review other patients’ evaluations of a hospital before admission.

Currently, Press Ganey provides patient experience solutions to more than 40,000 healthcare organizations, 2,500 ambulatory practices, and over 75% of emergency care hospitals in the United States.

Patrick T. Ryan, Executive Chairman of Press Ganey, stated, “We look forward to partnering with Leonard Green & Partners and Ares Management Corporation, which will bring expertise and extensive resources to Press Ganey.”

Leonard Green & Partners is a private equity investment firm founded in 1989 and headquartered in Los Angeles. Since its inception, the firm has invested in more than 90 companies through traditional buyouts, privatization transactions, recapitalizations, and growth equity investments. Its primary areas of focus include industrials, healthcare, retail, and consumer services.

Ares Management Corporation is a global alternative asset manager. As of March 31, 2019, the firm managed approximately $137 billion in assets and maintained 18 offices across the United States, Europe, Asia, and Australia. Since its inception in 1997, the company has adhered to a disciplined investment philosophy, committed to investing throughout market cycles.

(Compiled by Jiao Yanli)