Qualtrics to Acquire Press Ganey Forsta for $6.75B, Expanding AI-Powered Healthcare Solutions

Customer engagement company Qualtrics has announced plans to acquire healthcare market research firm Press Ganey Forsta for $6.75 billion, signaling a major shift in the healthcare technology landscape. The deal, expected to close in the coming months, aims to combine Qualtrics' artificial intelligence capabilities with Press Ganey's extensive healthcare expertise and data resources.

Strategic Expansion into Healthcare

Qualtrics, owned by private equity firm Silver Lake, sees this acquisition as a key opportunity to expand its reach into the healthcare sector. The merger will give Qualtrics access to Press Ganey's partnerships with 41,000 healthcare providers across 30 countries, as well as its vast datasets and benchmarking capabilities.

Zig Serafin, CEO of Qualtrics, emphasized the significance of the deal: "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-Powered Innovation in Healthcare

The combined entity plans to leverage Qualtrics' AI technology and Press Ganey's healthcare knowledge to develop new AI-powered tools and services. These innovations will focus on enhancing customer experience, patient experience, employee experience, and market research within the healthcare industry.

Patrick Ryan, chairman and CEO of Press Ganey Forsta, highlighted the transformative potential of this partnership: "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."

Financial Details and Industry Impact

The $6.75 billion acquisition will be funded through a combination of cash and equity. While the deal awaits closure, both companies will continue to operate independently.

Rob Allen, president and CEO of Intermountain Health, praised the merger as a "groundbreaking move" that will "positively transform healthcare experience and quality for the future."

This strategic acquisition comes at a time when both companies have been actively expanding their AI capabilities. Qualtrics reported that over one-third of its customers have already upgraded to its AI features, while Press Ganey recently announced a $500 million, five-year investment plan into AI, including a partnership with Microsoft for cloud computing and generative AI tools.