Golden Gate Is Said to Weigh Stake Sale of Ensemble Health

(Bloomberg) -- Golden Gate Capital is exploring a potential sale of its controlling stake in Ensemble Health Partners after plans to take the health information technology company public late last year were postponed, according to people familiar with the matter.

The private equity firm is working with an adviser to explore a sale of some or all of its 51% ownership in Ensemble that could value the company at more than $4 billion, said the people, who asked not to be identified because the matter isn't public.

Ensemble may be valued up to nearly $5 billion, according to one of the people.

Golden Gate's stake in Ensemble is expected to draw interest from private equity firms, one of the people said.

Representatives for Ensemble and Golden Gate declined to comment.

Ensemble filed to go public in September, postponing the IPO the following month while citing market conditions. Equity markets have been further whipsawed by volatility since then amid inflation jitters, geopolitical unrest and concerns about rising interest rates.

Ensemble helps health-care providers like hospitals and physician groups admit patients and collect payment for the services they provide as health insurers and the government increasingly look for ways to manage their spending.

Golden Gate bought a controlling stake in the firm in 2019 from Bon Secours Mercy Health, which retained a minority stake.

Ensemble generated $210.3 million of adjusted annual earnings before interest, taxes, depreciation and amortization in 2020 and its publicly listed competitors include R1 RCM Inc. and Conifer Holdings Inc., according to its IPO filing.