Agiliti to go private in $2.5B PE deal

This audio is auto-generated. Please let us know if you have feedback.

Medical technology services provider Agiliti said Monday it has agreed to be acquired by private equity firm Thomas H. Lee Partners (THL), its majority shareholder, in a deal valued at about $2.5 billion.

An affiliate of THL will buy all outstanding Agiliti common stock that it does not currently own for $10 per share in cash, representing a premium of 39% over Agiliti’s 30-day, volume-weighted average share price through Friday, the companies said.

The deal is expected to close in the first half of 2024, after which Agiliti will become a private company.

“We are pleased to expand our five-year partnership with THL in a transaction that provides immediate value and liquidity to our shareholders, while lifting certain overhangs that had limited our performance in the public market since the time of our IPO,” Agiliti CEO Tom Leonard said in a statement.

Agiliti’s board of directors approved the sale following the recommendation of a special committee of the board composed of non-management directors. The transaction also has been approved by majority shareholder THL Agiliti LLC and no other shareholder approval is required, according to the companies.

Agiliti provides medical equipment management strategies to hospitals, governments and original equipment manufacturers. It also offers repair services for surgical instruments, biomedical equipment and diagnostic imaging systems, as well as equipment rentals.

The company lost $12.7 million in the third quarter of 2023, compared to net income of $2 million in the prior-year period. Third-quarter revenue grew 7.5% to $291.6 million.