Shares of Premier Inc (NASDAQ:PINC) climbed more than 8% in premarket trading on Monday after a Bloomberg News report suggested that Patient Square Capital is exploring a potential acquisition of the healthcare services company.
The report, released Friday, cited sources familiar with the discussions, noting that negotiations are still in the early stages. There is no certainty that the talks will result in a deal with Patient Square Capital or any other interested party.
Michael Cherny, an analyst at Leerink Partners, commented on the development in a note, saying, “Given that Premier has already attempted one sale process, seeing another one crop up cannot be considered shocking by any means.”
He added, “We see a reasonable basis as to why PINC would explore a transaction, as to us this has always seemed to be a better business than is reflected in the stock.”
Cherny also pointed out that Premier’s stock is likely to respond positively to the news. Despite a strong year of performance, the company remains “somewhat of an outlier as the only publicly traded GPO,” he noted.
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