R1 RCM Inc. (NASDAQ: RCM) has entered into a definitive agreement to be acquired by TowerBrook Capital Partners and Clayton, Dubilier & Rice for $14.30 a share in cash, implying a reported enterprise value of $8.9 billion. The company has traditionally provided end-to-end outsourced billing and revenue cycle services to large health systems, and expanded into providing software and services on a modular basis with the 2022 acquisition of Cloudmed for $4.1 billion.
Revenue Cycle EBITDA Multiples
According to R1's 1Q 2024 and YE 2023 earnings release, trailing twelve month revenue was $2.31b and adjusted EBITDA was $624.3m, implying a trailing multiple of 14.3x EBITDA, which is well below the implied multiples from R1's recent acquisitions of Acclara and Cloudmed. Forward guidance is for 2024 adjusted EBITDA within the range of $650m to $670m, implying a forward multiple of 13.5x.
Other RCM / Billing Deals
Read Scope Research's take on other revenue cycle and billing M&A transactions:
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details for 52 revenue cycle management (RCM) and healthcare billing deals going back to 2010, 39 of which include reported EBITDA multiples. The revenue cycle data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
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