R1 RCM (NASDAQ: RCM), a provider of technology-driven services that transform the patient experience and financial performance of healthcare providers, has acquired Cloudmed, a provider of revenue cycle management services for healthcare providers. The deal values Cloudmed at $4.1 billion.

Cloudmed, a New Mountain Capital portfolio company, serves over 400 health systems in the United States, including 47 of the top 50 hospital systems. The firm’s revenue management platform combines cloud-based data and deep domain expertise with intelligent automation to analyze large amounts of data to identify opportunities to deliver additional revenue. In 2021, the firm recovered over $1.5 billion of underpaid or unidentified revenue for customers.

“We believe the combination of Cloudmed and R1 creates a clear market leader for technology and data powered revenue management for healthcare providers,” said Matt Holt, managing director and president, private equity of New Mountain Capital. “We are excited to support the long-term vision of the combined company to modernize the U.S. healthcare sector.”

Centerview Partners LLC acted as lead financial advisor to R1. J.P. Morgan Securities LLC also acted as a financial advisor to R1, and Kirkland & Ellis LLP acted as legal counsel. Barclays acted as financial advisor and Ropes & Gray LLP acted as legal counsel to Cloudmed. Wachtell, Lipton, Rosen & Katz and Covington & Burling LLP served as legal advisors to TowerBrook and Ascension, respectively.