Customer engagement company Qualtrics has agreed to invest $6.75 billion to acquire Press Ganey Forsta, a healthcare market research company.
Qualtrics, a customer survey software maker owned by private equity firm Silver Lake, aims to combine its artificial intelligence technology with Press Ganey’s extensive data, benchmarking and healthcare expertise to develop new AI-powered tools and services, the companies said in a press release.
The deal expands Qualtrics’ reach into healthcare and gives it access to Press Ganey’s hospital partnerships and data sets.
The Financial Times first reported the news Monday. The company issued a press release confirming the deal after markets closed Monday.
Press Ganey’s owners would be paid through a combination of cash and equity. The deal is expected to close in the coming months, the companies said. Until then, the two companies will continue to operate independently.
Press Ganey, which is owned by Ares Management and Leonard Green & Partners, conducts surveys, analytics and strategic advisory solutions to help health systems and health plans improve their customer experience, what the company dubs “the human experience of healthcare.”
“The combination of Qualtrics and Press Ganey Forsta represents a key milestone as companies adopt AI to interact with and address the needs of their customers and employees,” Qualtrics executives said in the press release. “Together, Qualtrics and Press Ganey Forsta will enable organizations to deliver better and more attuned products, services, and experiences powered by a deep understanding of the customers, employees, and industries they serve.”
“Bringing Qualtrics and Press Ganey Forsta together will accelerate the adoption of AI and create the most comprehensive platform for improving the human experience. Combining Qualtrics’ AI platform with Press Ganey Forsta’s trusted analytics and deep expertise creates an opportunity to deliver exceptional value and measurable outcomes for our customers,” said Zig Serafin, CEO of Qualtrics, in a statement. “There’s no more important proving ground for experience management than healthcare, where better experiences for patients and employees directly impact better outcomes and quality of care. We’re excited to welcome Press Ganey Forsta to Qualtrics and deliver this future together.”
The companies plan to develop AI tools and services for customer experience, patient experience, employee experience and market research.
Qualtric has been building out its AI capabilities. It touted that more than one-third of its customers have upgraded to Qualtrics’ AI capabilities, and 90% of the company’s top 50 enterprise customers have used new AI features, including Conversational Feedback, Qualtrics Assist, its synthetic research platform Edge Audiences and Experience Agents.
Press Ganey conducts surveys on behalf of 41,000 healthcare providers in 30 countries. The company also has been accelerating its work in AI. Earlier this year it announced a strategic partnership with Microsoft to leverage the tech giant’s AI and cloud computing capabilities. The patient experience monitoring company said it planned to bring new generative AI tools to market, including ambient listening for patient satisfaction, the company said.
In January, Press Ganey announced the launch of several AI tools—AI Summary, AI Compose and AI Recommend—as part of its $500 million, five-year investment into AI.
“AI is rapidly transforming every industry, and organizations need proven, innovative solutions grounded in deep expertise to move from insight to impact faster. This investment ignites our ability to deliver,” said Patrick Ryan, chairman and CEO of Press Ganey Forsta, in a statement. “By bringing together two leading companies, we’re accelerating critical advancements that will elevate the human experience, driving greater safety, trust, and value for millions of patients, consumers, and employees worldwide. It’s a remarkable opportunity, and we’re energized by the journey ahead with Qualtrics and our clients.”
Rob Allen, president and CEO of Intermountain Health, said Qualtrics’ investment in Press Ganey Forsta marks a “groundbreaking move” for healthcare that will “positively transform healthcare experience and quality for the future.”
“Qualtrics and Press Ganey Forsta together have unique capabilities and expertise to scale this across the industry,” Allen said.
