Two major ophthalmology groups have announced a merger. EyeCare Partners (ECP), a portfolio company of Partners Group, is acquiring CEI Vision Partners, a leading ophthalmology services organization formed in 2018. No price was officially disclosed, but PE Hub values the transaction at around $600 million. CEI Vision Partners was backed by Revelstoke Capital Partners.
The combination will create one of the largest organizations in the clinically integrated eye care field. The deal will especially bolster ECP’s national medical group and add more than 150 providers across all major subspecialties in ophthalmology and optometry in 47 clinical centers and eight ambulatory surgical centers, expanding ECP’s eye care services across Ohio, Kentucky, Indiana and Virginia. The new organization will have more than 280 ophthalmologists and 700 optometrists supported by almost 5,000 clinical staff and 1,200 support services team members across 18 states.
Ophthalmology providers have been in high demand this year, target in nearly 20% of all physician medical group transactions in 2021. All of them (yes, all of them) have involved private equity, whether as an investment establishing a new platform or through a sponsored company.
Most deals were done through a management services organization (MSO), such as ECP in this deal, or EyeSouth Partners, a portfolio company of Shore Capital Partners (six deals), SightMD, a portfolio company of Chicago Pacific Founders (three deals), or Eye Health America, a portfolio company of LLR Partners (four deals). Partnerships with MSOs will continue to remain a huge force in the M&A market for some time, so keep an eye out for more updates on LevinPro.
