- On Wednesday, interested investors were looking for Convey Health IPO plans.
- TPG had purchased Convey Health in 2019 from New Mountain Capital.
- Convey Health, established in 2001, offers a technological healthcare platform.
In an otherwise cool initial public offering (IPO) market, the news of Convey Health Solutions going private has gained the attention of potential investors in North America.
On Wednesday, interested investors were looking for Convey Health IPO plans after it was announced that the healthcare platform was going private. In an all-cash deal announced on Tuesday, private equity company TPG Inc. said it would purchase all the outstanding shares of Convey Health that it does not already hold.
According to the official statement, TPG, which now owns approximately 75 per cent of Convey Health, will purchase all outstanding shares of Convey Health for US$ 10.5 per share in cash. The deal would give an enterprise value of about US$ 1.1 billion to the Fort Lauderdale, Florida-based business.
Following the news of TPG's take-private agreement, Convey Health's shares increased by 138 per cent from the previous close and ended the session at US$ 10.3 per share.
Convey Health-TPG deal: Key details
Before this take-private agreement, TPG had purchased Convey Health in 2019 from New Mountain Capital. Later, in 2021, the healthcare platform went public when the IPO market received a solid response from investors.
Convey Health, established in 2001, offers a technological platform that supports some of the activities of pharmacy benefit managers and publicly funded health insurance programmes like Medicare and Medicaid.
The deal is anticipated to be finalised in the second half of this year. The transaction must meet the usual closing requirements before it can be completed.
No additional shareholder approval is necessary because TPG, Convey's largest stakeholder, has already consented to the transaction. Convey won't be publicly listed or traded on the NYSE after the purchase is complete, making it a private corporation.
Once the company goes private, it is uncertain if it will return to the stock market. Seeing the present economic situation, it is highly unlikely that TPG will consider taking the IPO route again soon.
The global economy is suffering as inflation rises worldwide, and stock markets are recording increased volatility in 2022. Interested investors will have to wait for the plans of TPG if they are keen on Convey Health IPO plans.
Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.