Healthcare IT-R1 RCM's Shareholder Says $13.75/Share Deal Offer Significantly Undervalues The Company
Portfolio Pulse from Vandana Singh
Coliseum Capital Management, a major shareholder of R1 RCM Inc (NASDAQ:RCM), believes New Mountain Capital's $13.75/share acquisition offer undervalues R1 RCM. Despite missing Q4 revenue expectations, R1 RCM reported a significant year-over-year revenue increase and a positive GAAP net income, contrasting with the previous year's loss. The company's CEO highlighted achievements and future growth plans, including revenue and EBITDA projections for 2024. RCM shares rose 4% to $14.45.
February 27, 2024 | 6:06 pm
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Coliseum Capital Management criticizes the acquisition offer for R1 RCM by New Mountain Capital as undervaluing the company. R1 RCM reported a positive financial turnaround in Q4 2023, with significant revenue growth and a shift from net loss to net income. The company's shares increased by 4% to $14.45.
The criticism from a major shareholder about the acquisition offer being too low, combined with the reported financial improvements and positive future projections, suggests a strong market confidence in R1 RCM's value. This is likely to result in a positive short-term impact on RCM's stock price, as evidenced by the 4% increase.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100