Private Equity Giants Eye $1B Acquisition of AGS Health

Global private equity firms Blackstone (NYSE:BX), Hillhouse Investment, TPG (NASDAQ:TPG), and General Atlantic have submitted non-binding bids to acquire AGS Health, valuing the healthcare IT services provider at around $1 billion, according to the Economic Times.

EQT (ST:EQTAB) Partners, the Swedish investment firm that acquired AGS Health for $320 million in 2019, has enlisted JP Morgan and Bank of America to oversee the sale. Sources indicate EQT will formally launch the process early next year.

AGS Health, a leading healthcare business process outsourcing (BPO) company, employs 12,000 professionals across India, Manila, and the U.S., serving over 150 clients. The surge in private equity interest reflects the industry's growth potential, with the global healthcare BPO market projected to expand from $152 billion in 2022 to $259 billion by 2028. Rising healthcare costs and the demand for cost-efficient outsourcing solutions are key drivers of this growth, according to a BCC Research study cited by the Economic Times.

With private equity giants competing for AGS Health, the deal could mark one of the sector’s most significant transactions. The acquisition underscores the increasing appeal of healthcare IT services amid a rapidly evolving global healthcare landscape.