Qualtrics is poised to acquire healthcare survey firm Press Ganey Forsta in a significant $6.75 billion deal, enhancing its AI analytics capabilities within the healthcare sector.
Qualtrics, a leading provider of artificial intelligence-powered customer survey software, has announced plans to acquire Press Ganey Forsta, a prominent healthcare market research company, in a deal valued at $6.75 billion. This acquisition, reported by the Financial Times, is expected to significantly enhance Qualtrics’ capabilities in the healthcare sector by leveraging Press Ganey’s extensive data networks and hospital connections.
The acquisition is structured to include a mix of cash and shares from Qualtrics, which is privately held. A consortium of 11 banks and private capital firms is reportedly providing the necessary debt financing for the transaction.
Based in the United States, Qualtrics is owned by private equity firm Silver Lake and specializes in tools for measuring and analyzing customer, employee, product, and brand experiences. Its clientele includes major organizations such as Microsoft, BMW, and the U.S. Department of Homeland Security.
Press Ganey, in contrast, serves over 41,000 hospital systems and healthcare companies, compiling feedback from patients and healthcare providers through various survey methods, including manual, verbal, and digital formats. The merger aims to combine Qualtrics’ advanced AI technologies with Press Ganey’s established presence in the healthcare industry, potentially leading to the development of new AI-driven tools and services.
Industry experts suggest that technology companies like Press Ganey, which possess valuable data for training algorithms, will become increasingly attractive acquisition targets for AI platforms. This acquisition marks Qualtrics’ largest to date, following its transition to private ownership in 2023, when Silver Lake and the Canada Pension Plan Investment Board acquired the company for approximately $12.5 billion.
The deal is part of a broader trend of private equity-backed mergers and acquisitions in the software and health-tech sectors. According to data from the London Stock Exchange Group, the value of such deals globally reached $571 billion by the end of September 2023, marking the third highest total on record.
This acquisition not only underscores the growing intersection of technology and healthcare but also highlights the increasing importance of data-driven insights in improving patient care and satisfaction.
According to Financial Times, the deal is set to be officially announced later today.
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