Patient Survey Company Press Ganey Is Nearing a Deal to Sell Itself

Press Ganey Holdings Inc., which conducts patient satisfaction surveys for health-care providers, is nearing a deal to sell itself, according to people familiar with the matter.

A deal for Press Ganey could be announced in the coming weeks, the people said. It isn't clear what price Press Ganey would fetch. The Wakefield, Mass.-based company has a market value of about $2.1 billion.

Swedish private-equity firm EQT is considered a front-runner to buy Press Ganey, some of the people said, but the sale process has attracted other suitors who could make a higher offer.

As with all sale processes, there's no guarantee a deal will be reached.

While merger activity this year has been muted compared with 2015's record-breaking volumes, deal-making has remained active in the health-care services and technology sectors. In June, Envision Healthcare Holdings Inc. and AmSurg Corp. agreed to merge in a deal that will bring the two ambulatory surgery companies together. The same month, health-care giant McKesson Corp. said it would combine most of its technology segment with the bulk of Change Healthcare Holdings Inc.

Press Ganey monitors patient satisfaction for health-care providers such as hospitals and doctor's offices through surveys, strategic consulting and other products. The company raised about $233 million in a May 2015 initial public offering, and its shares have risen sharply since. They closed Monday at $40.33 Monday, 61% over their IPO price.

The company last week reported second-quarter profit of $7.9 million, up from a loss of $53.8 million in the year-earlier period. Sales rose 17.7% to $91.2 million.

EQT, founded in 1994 by Sweden's billionaire Wallenberg family, owns around 70 companies globally, according to the firm's website.

Write to Dana Mattioli at [e-mail] and Eyk Henning at [e-mail]

(END) Dow Jones Newswires

August 09, 2016 07:35 ET (11:35 GMT)

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