An affiliate of private equity firm Vestar Capital Partners has agreed to pay $294 million for Golden-based HealthGrades, an online provider of ratings and profiles of physicians, hospitals and nursing homes.
The Vestar affiliate, Mountain Acquisition Co., will acquire HealthGrades for $8.20 a share, a 29 percent premium over HealthGrades’ close on Tuesday.
The deal was announced Wednesday, sending HealthGrades shares up 28 percent to $8.12.
HealthGrades is in the process of moving its headquarters to 999 18th St. in downtown Denver. A lease for 87,000 square feet of office space with an average annual rent of $1.8 million starts in December and runs through March 2019, according to a regulatory filing.
Vestar is based in New York and has an office in Denver, in which former Mayor Federico Peña is a senior adviser. HealthGrades is expected to stay in Denver.
“HealthGrades will continue to be based in its new headquarters in Denver, and our brand, products and services and mission will remain intact,” HealthGrades chairman and chief executive Kerry Hicks wrote in an e-mail to employees. “We believe that Vestar is investing in HealthGrades because it believes in our mission.”
Vestar would not comment on its plans for HealthGrades.
At the end of 2009, HealthGrades employed 209 people, mostly in Golden, according to a regulatory filing.
HealthGrades also announced Wednesday that it posted net income of $3.2 million on sales of $15.6 million during the second quarter. During the same quarter a year ago, the company reported $1.7 million in net income and $12.5 million in revenue.
Andy Vuong: 303-954-1209, avuong@denverpost.com
