US-based private equity company New Mountain Capital has proposed an all-cash acquisition of R1 RCM, a company that supplies healthcare revenue cycle management (RCM) services.

The deal is expected to value R1 RCM at nearly $6bn, according to Reuters.

Under the newly submitted proposal, New Mountain Capital aims to purchase all outstanding shares in R1 RCM that it does not already own for $13.25 each.

Earlier this year, a group of investors led by New Mountain put forward a draft proposal to acquire all R1 RCM’s outstanding shares for $13.75 a share in cash.

New Mountain recently confirmed that it was no longer pursuing the joint proposal for the take-private transaction.

New Mountain currently holds a stake of more than 32% in R1 RCM and has been in discussions for a joint bid with TCP-ASC.

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TCP-ASC is an investment entity co-owned by Ascension Health Alliance and funds affiliated with TowerBrook Capital Partners, which owns nearly a 36% stake in R1 RCM.

R1 RCM’s current market valuation stands at $4.59bn, according to the London Stock Exchange Group.

The Utah-based company’s shares have increased by more than 5% since the start of the year.

Despite the proposal, the company has not yet provided any response to the private equity company’s new offer.

Established in 2003, R1 RCM delivers technology-enabled solutions designed to help healthcare providers manage costs, boost revenue and optimise their operations.

The company’s expertise covers various areas, including revenue cycle management, emergency medical services, physician advisory services, patient experience, practice management and digital transformation.

In August 2022, St Clair Health selected R1 RCM as its primary end-to-end RCM services provider for the next ten years.

The deal integrated R1 RCM’s technology platform, enterprise-wide analytics, operating methods and intelligent automation into St Clair Health’s existing infrastructure.