Blackstone Edges Past Rivals to Become Frontrunner for EQT’s AGS Health

American private equity giant Blackstone has reportedly taken the lead in the race to acquire AGS Health, a healthcare IT services provider currently owned by EQT. Swedish global investment firm EQT Private Capital Asia, formerly known as Baring Private Equity Asia, acquired AGS Health in 2019 for about $320 million.

After about five years, the private equity firm reportedly hired JP Morgan and Bank of America as sell-side advisors in early 2025 to invite bids for the revenue cycle management (RCM) firm, which has a presence in the US and India. In March, it was reported that a group of suitors, including Blackstone, Frazier Partners, and the TPG-General Atlantic consortium, had moved to the next round for due diligence.

According to a new report by MoneyControl, after binding offers were submitted last week, Blackstone has pulled ahead of rival bidders and is currently viewed as the frontrunner for the deal. However, the report, citing anonymous sources, noted that the final decision is still pending. The potential deal value is estimated to be between $1.1 billion and $1.3 billion.

What AGS Health Offers

According to an earlier report by the Economic Times (ET), AGS Health is projected to generate around $60 million in EBITDA and approximately $150 million in annualised revenue for the current fiscal year. The company specialises in revenue cycle management (RCM) services for healthcare providers and vendors in the United States.

With a workforce of 12,000 professionals across offices in India, the Philippines, and the US, AGS supports more than 150 clients. These include major healthcare entities such as Aegis Sciences Corporation, American Addiction Centers, ApolloMD, Auburn Community Hospital, DocuCare LLC, OhioHealth, Richmond University Medical Center, and Vanderbilt University Medical Center.

EQT has a diverse portfolio of IT and IT-enabled services firms with a strong operational base in India. Last year, the private equity firm acquired GeBBS Healthcare Solutions, a direct competitor of AGS Health, from ChrysCapital in a deal worth $860 million. With this acquisition, EQT now controls four healthcare IT service providers in India: CitiusTech, AGS Health, Sagility, and GeBBS.

Global private equity players have shown increasing interest in the healthcare IT and BPO segments. According to BCC Research, the global healthcare BPO market is expected to grow from $151.9 billion in 2022 to $259.5 billion by 2028, reflecting a compound annual growth rate of 9.7%. Rising healthcare costs are driving organisations to adopt outsourcing solutions to improve efficiency, reduce expenses, and manage the growing complexity of healthcare operations.

TPG Capital, for example, has made significant investments in this space with companies like Nextech, Lyric, WellSky, and IQVIA in its portfolio. Blackstone also has exposure through its acquisition of HealthEdge.

Other notable transactions in the sector include the Ontario Teachers’ Pension Plan acquiring a 45% stake in Omega Healthcare at a $1.8 billion valuation, and TA Associates’ acquisition of a majority stake in Bengaluru- and US-based Vee Healthtek for around $250 million.