Convey Health Solutions, which provides technology and analytics services for health plans like Medicare and Medicaid, announced it would go private through a merger with its principal shareholder, TPG Capital.

Under the terms of the deal, private equity firm TPG will acquire all outstanding shares of Convey common stock not currently owned by TPG or certain management and director shareholders for $10.50 per share in cash, or about $1.1 billion. The merger is expected to close in the second half of 2022.

"We believe this transaction provides substantial value, liquidity and certainty for our shareholders. Going forward, as a private company and with TPG's support, we will have the ability to continue to make investments in the company and better serve our customers," Stephen Farrell, CEO of Convey, said in a statement.

THE LARGER TREND

Founded in 2001, Convey was first acquired by TPG from New Mountain Capital in 2019. It then went public last year.

Convey's stock surged after news of the deal broke. It closed last Friday at $4.32 per share and wrapped up yesterday at $10.36.

ON THE RECORD

"Convey is a leading, integrated payer technology platform that enables efficiency and improves clinical and financial outcomes across the healthcare system. We look forward to continuing our partnership in its next chapter as a private company," Katherine Wood, partner at TPG, said in a statement.