M&A Deal Summary

The Blackstone Group and Hellman & Friedman Acquire Emdeon Business Services

On August 4, 2011, private equity firms The Blackstone Group and Hellman & Friedman acquired information technology company Emdeon Business Services for 3.0B USD

Acquisition Highlights
  • This is The Blackstone Group’s 5th and Hellman & Friedman’s 3rd transaction in the Information Technology sector.
  • This is The Blackstone Group’s 50th and Hellman & Friedman’s 12th largest (disclosed) transaction.
  • This is The Blackstone Group’s 99th and Hellman & Friedman’s 33rd transaction in the United States.
  • This is The Blackstone Group’s 5th and Hellman & Friedman’s 3rd transaction in Tennessee.

M&A Deal Summary

Date 2011-08-04
Target Emdeon Business Services
Sector Information Technology
Buyer(s) The Blackstone Group
Hellman & Friedman
Deal Type Going Private
Deal Value 3.0B USD
Advisor(s) Citi
Morgan Stanley
UBS Investment Bank (Financial)

Target

Emdeon Business Services

Nashville, Tennessee, United States
Emdeon Business Services is a provider of revenue cycle management and clinical communication solutions that enables payers, providers and patients to improve healthcare business processes. Emdeon Business Services is based in Nashville, Tennessee.

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Buyer(S) 2

Buyer

The Blackstone Group

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 131.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

The Blackstone Group is a global alternative investment management firm. The Firm's investment activities span real estate, secondary investments, hedge funds, credit, infrastructure, and private equity. Blackstone's private equity group targets opportunities globally including buyout acquisitions of established companies, development projects, growth equity financings, and industry consolidations. Sectors of interest include automotive, healthcare, chemicals, industrial, commercial property, lodging, communications, media/publishing, consumer & retail, packaging, consumer products, pharmaceuticals, energy, technology, entertainment, telecommunications, financial services, theme parks, food & beverage, and transportation. Blackstone's private equity real estate group looks for opportunities across North/South America, Asia, Australia/New Zealand, and Europe. The real estate group will consider both equity and debt investments. Areas of interest include healthcare, hotel, industrial, office, residential, and retail. The Blackstone Group was formed in 1987 and is based in New York, New York.


DEAL STATS #
Overall 152 of 340
Sector (Information Technology) 5 of 23
Type (Going Private) 14 of 36
State (Tennessee) 5 of 8
Country (United States) 99 of 211
Year (2011) 7 of 10
Size (of disclosed) 50 of 172
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-01 Cumulus Media Partners

Atlanta, Georgia, United States

Cumulus Media Partners, LLC owns and operates radio broadcasting stations. The company, through its AM and FM radio stations, serves listeners, communities, advertisers, and agencies in Dallas, Houston, San Francisco, Atlanta, Cincinnati, Indianapolis, York, Albemarle, and Anniston. The company was formerly known as Susquehanna Radio Corp. and it changed its name to Cumulus Media Partners, LLC in May, 2006.

Sell $740M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-12 Exeter Finance

Austin, Texas, United States

Exeter Finance is an indirect auto finance company. The company underwrites, purchases, services, and securitizes retail installment contracts from U.S. automobile dealers. It works with more than 11,000 dealers and 475,000 customers nationwide providing indirect financing for both new and used vehicles. The company has a serviced finance portfolio of more than $7 billion. Exeter Finance was formed in 2006 and is based in Irving, Texas.

Buy -
Buyer

Hellman & Friedman

San Francisco, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 50.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Hellman & Friedman (H&F) is a large private equity firm on the West Coast of the US. H&F focuses on control and minority investments in a variety of transaction structures and will consider opportunities across the US and Europe. H&F seeks buyouts and business in need of restructurings that operate in defensible markets with predictable revenue and earnings growth. Target sectors include financial services, healthcare, indusrial, energy, insurance, media, marketing, professional services, software, and information services. H&F's target equity investment size is $300 million to $1 billion. Hellman & Friedman was formed in 1984 and has offices in San Francisco, New York City, and London.


DEAL STATS #
Overall 48 of 88
Sector (Information Technology) 3 of 4
Type (Going Private) 10 of 17
State (Tennessee) 3 of 3
Country (United States) 33 of 61
Year (2011) 5 of 7
Size (of disclosed) 12 of 39
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-07-30 Action

Zwaagdijk-oost, Netherlands

Action is a non-food discount retailer. Its core product assortment includes decoration, DIY, garden and outdoor, household goods, multimedia, sports, stationery and hobby, toys and entertainment, food and drink, laundry and cleaning, personal care, pets, clothing and linen. Action uses large-scale procurement, flexible assortment, optimal distribution and a cost-conscious corporate culture to ensure very low prices for its customers, with the promise of "more than you expect for less than you imagine". Action was founded in 1993 and is based in Zwaagdijk-oost, Netherlands.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-11 OpenLink Financial

Uniondale, New York, United States

OpenLink Financial is a provider of cross-asset trading, risk management, and related portfolio management software solutions for the commodity, energy and financial services markets globally. OpenLink’s blue chip client base of more than 150 customers worldwide includes twelve of the top twenty-five largest commodity and energy companies by market capitalization, eight of the largest financial institutions and eleven of the largest central banks, as well as major hedge funds and public utilities. Headquartered on Long Island, New York, and with offices in New York, Houston, London, Berlin, Vienna, São Paulo, Sydney, and Singapore.

Buy -