Morning,
Happy Fri-yay! John R Fischer here, bringing you the US Wire from the New York newsroom.
First up, we have my listicle on PE investments in medical staffing agencies, which have attracted the likes of Ares Management, Leonard Green & Partners and One Equity Partners.
For our Friday Focus, we’re zeroing in on a biopharma merger between the portfolio companies of Odyssey Investment Partners and Permira.
We’ll finish with insights from a report on private equity healthcare dealmaking in a country increasingly popular among PE investors: India. Let’s dive in.
Staffing up
Workforce shortages, along with growing healthcare service demands and financial pressures on healthcare providers, are fueling PE consolidation of the fragmented market of medical staffing businesses. Workforce management and tech-enabled staffing software for unique care settings and providers are also creating opportunities for PE-backed investments on the technology side of this healthcare subsector.
I rounded up six PE-backed medical staffing deals in North America and Europe from the last six months. Here is the most recent:
OEP-backed Prime Time acquires healthcare staffing firm AB Staffing
In March, Prime Time Healthcare, a medical staffing company backed by One Equity Partners, announced its add-on of AB Staffing. As part of the deal, Prime Time has rebranded itself as Fortis Healthcare Solutions.
Based in Elkhorn, Nebraska, Fortis provides physicians and nursing professionals to public and private clients for travel care, long-term care, therapy and nursing in both temporary and permanent capacities. OEP invested in the company in 2022.
AB Staffing is based in Gilbert, Arizona, and is comprised of two businesses: AB Staffing Solutions and Adaptive Workforce Solutions.
Read the full piece for more medical staffing deals.
Friday Focus
Earlier this week, PharmaCord, backed by Permira, and Mercalis, backed by Odyssey Investment Partners, announced their merger into one of the largest independent patient access companies in the biopharmaceutical market. Permira will be the majority shareholder of the combined company.
PharmaCord, which is based in Jeffersonville, Indiana, provides biopharma patient services, while Morrisville, North Carolina-based Mercalis offers commercial services for the life sciences and pharmaceutical industries. Its services include market access insights, technology-enabled patient support and healthcare provider engagement.
“With our support, the combined company will have the resources to continue innovating and catering to the evolving needs of patients and biopharmaceutical companies,” said Jon Maschmeyer, partner at Permira and member of PharmaCord’s board, in a statement.
Permira announced its intent to acquire PharmaCord in June, completing the investment in September. The merger is expected to close in the third quarter of this year.
The deal aligns with PE’s increasing interest in outsourced services for pharma, as well as data-driven technologies for patient access to pharmaceuticals. Other firms following this trend are Arlington Capital Partners, which – in an exclusive with PE Hub – announced its acquisition of Team Tech; 1315 Capital, which acquired SciSafe; and Audax Private Equity, which acquired Resonant Clinical Solutions for approximately $650 million.
Opportunities in India
India’s healthcare and pharma sector experienced nearly 600 M&A and private equity transactions between 2022 and 2024 that together totaled over $30 billion in deal value, according to a report by professional services firm Grant Thornton Bharat and the Association of Healthcare Providers India.
Nearly 40 percent of investments focused on hospitals, driven by robust operational metrics, scalability, an ability to address critical healthcare needs and rising healthcare service demands, said the report, titled Vitals for growth: Decoding healthcare financing and funding in India.
Hospitals are commanding valuation multiples ranging between 20x and 30x EBITDA, especially in high-demand specialties such as oncology, cardiology and mother-and-child care. Bed occupancy rates and revenue per bed are also fueling investor confidence.
“Hospitals that demonstrate long-term growth potential through digital adoption and strategic acquisitions will strengthen their market positioning and command premium valuations, reflecting investor confidence in scalable and high-performing healthcare models,” said Darshana Kadakia, partner at Grant Thornton Bharat, in a statement.
Private equity is particularly focused on single specialty hospitals, with those specializing in nephrology, IVF and oncology attracting $1.4 billion in PE investments over the two-year period due to their asset-light, scalable models. Tailwinds include consistent growth, scalable operations, high return on capital employed and targeted clinical outcomes, said the report.
Private equity firms are also investing in medtech, including AI diagnostics and telemedicine technologies, due to increased demand and adoption to enhance patient outcomes and improve cost efficiency.
“Delivering high-quality patient care, backed by innovation and operational efficiency, is essential to attract investors, building trust and sustaining value,” said Bhanu Prakash Kalmath S J, partner and healthcare industry leader at Grant Thornton Bharat, in a statement.
In and outside of healthcare, India has established itself as a compelling investment destination for global private equity giants like Blackstone, KKR and EQT, all of which discussed the investment opportunities in the country with PE Hub’s Irien Joseph in November.
PE Hub has already reported on several deals in India in 2025. Here are three:
KKR to acquire majority stake in India-based oncology hospital chain HCG for $400m
Carlyle-backed Hexaware in $1bn India IPO
Carlyle takes controlling stake in two India-based manufacturers Highway and Roop
Well, that’s it for me. As always, if you have any questions, thoughts or want to chat, please email me at john.fischer@pei.group.
Craig McGlashan will bring you the Europe Wire on Monday as Nina Lindholm will be taking a day off. MK Flynn will write to you with the US one as usual.
Cheers,
John
