Qualtrics Acquires Press Ganey Forsta for $6.75 Billion, Expanding AI Capabilities in Healthcare

Customer experience firm Qualtrics has agreed to acquire healthcare market research company Press Ganey Forsta for $6.75 billion, marking a significant move in the healthcare technology sector. The deal, announced on Monday, aims to combine Qualtrics' artificial intelligence technology with Press Ganey's extensive healthcare data and expertise to develop new AI-powered tools and services.

Deal Structure and Strategic Rationale

The acquisition, which is expected to close in the coming months, will be paid through a combination of cash and equity in Qualtrics. This strategic move gives Qualtrics, owned by private equity firm Silver Lake, access to Press Ganey's extensive healthcare data stores and partnerships with 41,000 providers across 30 countries.

Zig Serafin, CEO of Qualtrics, emphasized the importance of this acquisition, stating, "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."

AI Integration and Healthcare Innovation

Both companies have been actively developing AI capabilities in recent months, and this merger is set to accelerate these efforts:

• Qualtrics has been expanding its AI tools, with over one-third of its customers upgrading to its AI capabilities and 90% of its top 50 enterprise customers using new AI features.
• Press Ganey recently launched several AI tools, including AI Summary, AI Compose, and AI Recommend, as part of a $500 million, five-year investment in AI.

The combined entity plans to leverage these technologies to enhance customer experience, patient experience, employee experience, and market research in the healthcare sector.

Industry Impact and Future Outlook

The merger is expected to have far-reaching implications for the healthcare industry. Rob Allen, president and CEO of Intermountain Health, described the acquisition as a "groundbreaking move" that will "positively transform healthcare experience and quality for the future."

Patrick Ryan, chairman and CEO of Press Ganey Forsta, added, "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."

As the healthcare sector continues to embrace digital transformation and AI-driven solutions, this acquisition positions the combined Qualtrics and Press Ganey Forsta entity at the forefront of innovation in patient care and healthcare management.