• Revenue run rate of more than USD 200m
• Industry multiples can top 20x EBITDA

Infinx Healthcare, a provider of artificial intelligence-powered patient access and revenue cycle management (RCM) solutions, aims to complete one to two acquisitions a year, said Sudeep Tandon, co-founder and managing director.

Dual headquartered in Mumbai, India and Cupertino, California, Infinx is seeking US targets, Tandon said. Its sweet spot is companies with between USD 25m and USD 75m in revenue, though it has seriously looked at targets with more than USD 100m in revenue, he noted.

Ideal buys would fit into existing service lines or markets or add new ones, according to Tandon. Areas of interest include behavioral healthcare, acute care, and patient access, as well as companies serving larger physician practice groups.

Infinx, backed by minority investors KKR and Northwest Venture Partners, has so far acquired six companies. It closed three deals since late 2024, including MedReceivables Advisor, a provider of pathology billing and RCM for hospital-based practices; and Glidian, a provider of prior authorization automation.

In May, Infinx bought the healthcare RCM business of Nasdaq-listed i3 Verticals for USD 96m – its largest deal to date, according to Tandon. The company primarily funds deals through cash and earnouts, he said.

Leveraged by consultants and billing specialists across the US, India, and the Philippines, Infinx’s cloud-based software optimizes and automates healthcare financial functions including document processing, eligibility verifications, benefits checks, prior authorizations, and claims submissions.

The company has around 8,000 employees.

Tandon said Infinx is debt-free and has a revenue run rate of more than USD 200m. Roughly 85%-90% of revenue is recurring or reoccurring, and its EBITDA margin is around 20%-30%, he added. The business has been growing by 50%-70% via organic growth and acquisitions, with 30%-50% growth expected moving forward, according to Tandon.

Infinx caters to hospitals, ambulatory surgery centers, and physician groups (in 40 different specialties). It has roughly 800 customers comprising more than 4,000 facilities and 172,000 healthcare professionals, Tandon said.

The business was co-founded in 2012 by Tandon and his brother and CEO Jaideep Tandon, along with a third brother. It is majority-owned by the Tandon family. In May 2024, KKR acquired a significant minority stake, with participation from Northwest, which originally invested in 2021.

Other players in the RCM space, according to Tandon, include Zotec Partners, Access Healthcare Services, AGS Health, and GeBBS Healthcare Solutions. Prior authorization software firms include Experian and Waystar Technologies, he added.

AGS, backed by EQT, is reportedly exploring a potential USD 1bn sale, with bidders including Blackstone, TPG, and General Atlantic. EQT, last year, acquired GeBBS reportedly for more than USD 850m.

In January, Access Healthcare announced a strategic investment from New Mountain Capital, and in 2024, Waystar went public at a valuation of around USD 3.69bn.

This news service reported in August 2024 that the fragmented RCM space continues to gain favor among investors, with M&A activity heating up after TowerBrook Capital Partners and Clayton, Dubilier & Rice’s USD 7bn acquisition last year of listed R1 RCM. Technology-driven RCM companies can command multiples upwards of 20x EBITDA, the report added.

Tandon said consideration of an initial public offering or Infinx sale is possible within two to three years, though there is no set timing at this point.

Infinx uses law firm Stinson in the US and Argus Partners in India. It has worked with accounting firms including EY, PwC, and Deloitte. Rothschild advised on its investment by KKR.