Meed | Mubadala acquires stake in $17bn US healthcare platform

Mubadala acquires stake in $17bn US healthcare platform

5 December 2024

Abu Dhabi-based Mubadala Investment Company has agreed to purchase a minority stake in Zelis, a US-based healthcare technology solutions provider.

Mubadala Investment Company is the lead investor, alongside a group of investors including Norwest and HarbourVest, both US-headquartered private equity firms.

Parthenon and Bain Capital remain the majority owners of Zelis.

Mina Hamoodi, head of Healthcare Investments at Mubadala, said the deal is “the largest investment that we have made in the healthcare space”.

In October, Bloomberg reported that Mubadala was nearing a deal to buy a minority stake in the private equity-backed company, reportedly valued at $17bn at the time.

“Zelis is helping to streamline the US healthcare financial experience, which is complex and in need of technology-driven solutions that can unlock efficiencies and create better outcomes for everyone engaged in the care journey,” said Hamoodi.

Zelis is “modernising the healthcare financial experience” by providing a connected platform that bridges the gaps and aligns interests across payers, providers and healthcare consumers.

The platform serves over 750 payers, including the US’ top five national health plans, BCBS insurers, regional health plans, third-party administrators and self-insured employers, and millions of healthcare providers and consumers.

Goldman Sachs & Co and JP Morgan Securities served as financial advisers and Kirkland & Ellis acted as legal advisers to Zelis.

Evercore served as financial adviser and Akin Gump Strauss Hauer & Feld acted as legal counsel to Mubadala.

The transaction closed on 26 November.

Photo credit: PIxabay (for illustrative purposes only)

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Jennifer Aguinaldo