The Greater New York Hospital Association (GNYHA) announced last week it sold Acurity, Inc., a regional group purchasing organization (GPO) to Premier Inc. (NASDAQ: PINC). The deal also included Nexera, a hospital financial improvement consulting firm. Premier spent $291.5 million for both businesses, comprised of approximately $166.1 million in cash at closing and an additional estimated deferred payments of $125.4 million.

A contingent payment of up to $30 million may be made to the GNYHA in FY2025, based on Premier’s achievement of a range of member renewals on terms to be agreed to by Premier and the sellers based on prevailing market conditions in December.

Acurity has been a customer and strategic partner of Premier for more than 24 years. Its members include more than 300 hospitals and 2,700 health-related facilities. Acurity has accounted for approximately $68 million, or 10%, of Premier’s total net administrative fees revenue in FY2019.

This acquisition follows Premier’s acquisition of Medpricer in October 2019 for $35 million. Medpricer’s software-as-a-service platform enables hospitals to analyze, benchmark and source purchased services contracts independent of any existing group purchasing organization affiliation. The company’s platform uses machine learning to validate, compare and onboard purchased services suppliers such as revenue cycle management, marketing, lab testing and environmental services. This technology gives Premier leverage in a $160 billion acute care market.

On a trailing 12-month basis, Premier generated revenue of $1.22 billion, EBITDA of $521.83 million and net income of $15.71 million.