Blackstone plans to buy healthcare consulting and advisory group Chartis Group from Audax Private Equity.
The Chicago-based company announced Wednesday that it had entered into a definitive agreement to receive a majority investment from funds managed by Blackstone.
Terms of the transaction were not disclosed.
The deal could value Chartis at about $1.4 billion, including debt, people familiar with the matter said, asking not to be identified discussing confidential information, Bloomberg reported.
Audax will remain invested in Chartis.
This strategic investment from Blackstone will expand Chartis’ capabilities and support the firm’s continued growth, executives said. Founded 23 years ago, Chartis says it works with 900 clients and advises providers, payers, technology and retail companies, and investors in the healthcare space. The company has 1,000 employees.
Blackstone is investing in Chartis through its core private equity strategy, and the investment includes continued equity participation from Audax Private Equity. The transaction is expected to close by the end of 2024, the companies said in a press release.
“Chartis was founded with the mission to help clients fundamentally improve healthcare delivery across the United States. Over the past 23 years, since our inception, great strides have been made. Looking to the future, we are excited to do even more. Blackstone shares our commitment to supporting industry leaders across the healthcare landscape as they strive to make care in the US more accessible, more affordable, more reliable, more equitable, and more human for patients and caregivers,” said co-founders Ken Graboys, CEO of Chartis, and Ethan Arnold, managing partner, in a statement.
Since Audax’s 2019 investment, Chartis has acquired and integrated seven add-on acquisitions, expanding the firm into complementary capabilities and new end markets. In March, the company acquired payer-focused consulting firm HealthScape Advisors for an undisclosed sum. Chartis said the move was part of its effort to “meaningfully expand” it presence in the payer segment.
Since 2019, Chartis has also established several new centers for research and advancement, the firm said.
The acquisition adds to Blackstone’s portfolio of more than 230 companies.
Lincoln International and Bank of America Corp. advised Chartis and Audax, while Goldman Sachs Group Inc. worked with Blackstone.