Frazier Healthcare Partners agreed to buy a 60 percent stake in Matrix Medical Network from Providence Service Corp. (Nasdaq: PRSC) The transaction values the target at $537.5 million. Providence will keep a 40 percent stake in Matrix and will receive $418 million in proceeds.

Matrix, located in Scottsdale, Arizona, partners with health care plans to provide risk management and other in-home medical services through a network of nurse practitioners for Medicaid and Medicare Advantage. A combination of an aging population and the Affordable Care Act has been driving home nursing deals.

In 2015, Matrix generated $217.4 million in revenue and $22.1 million in operating income. Providence paid $400 million for Matrix in 2014. Tucson, Arizona-based Providence provides and manages government-sponsored human services, employment services and non-emergency transportation services.

“This partnership will allow us to accelerate our growth strategy into a diversified health care services company by leveraging our proven operational platform as the foundation,” says Matrix CEO Walt Cooper. With Frazier coming on as a majority owner, Matrix will receive additional capital and may seek acquisitions. In other home health care services deals, Amedisys Inc. (Nasdaq: AMED) acquired Infinity HomeCare and Almost Family Inc. (Nasdaq: AFAM) purchased Will Health Care.

Frazier is a health care focused private equity firm that has previously invested home medical services provider Abode Healthcare; Elements Behavioral Health and Leiter’s Compounding Pharmacy. The PE firm has offices in Seattle and Menlo Park, California.

TripleTree and Debevoise & Plimpton LLP are advising Providence. Goodwin & Proctor LLP is advising Frazier.