On April 8, Vista Equity Partners, a private equity firm based in Austin, Texas, announced that it acquired Model N. Under the terms of the agreement, Vista will acquire all the outstanding shares of Model N common stock for $30.00 per share in an all-cash transaction valued at approximately $1.25 billion.
Model N is a leader in revenue optimization and compliance for pharmaceutical, medtech and high-tech innovators. It is based in San Mateo, California and has additional locations in Tennessee, Colorado and Delaware as well as India and Switzerland.
Vista Equity Partners has more than $101 billion in cumulative capital commitments, as of September 2023. It invests in the software, data and technology industries.
The transaction is expected to close in mid-2024, subject to customary closing conditions, including approval by Model N stockholders. Model N will become a privately held company and shares of Model N common stock will no longer be listed on any public market.
Jefferies LLC is serving as exclusive financial advisor and provided a fairness opinion to Model N, and Fenwick & West LLP is serving as legal counsel. Kirkland & Ellis LLP is acting as legal counsel to Vista.
According to data captured in the LevinPro HC database, this acquisition marks the 69th eHealth transaction of 2024 and the 10th in the revenue cycle management (RCM) specialty. Between January 1, 2023 and April 8, 2023, there were 18 RCM acquisitions reported.
