Audax Private Equity is selling United Urology Group (UUG) to OneOncology, a national network of leading independent oncology practices.
The financial terms of the deal – announced Tuesday – have not been disclosed. The transaction is expected to close by the end of 2024, pending regulatory approvals and customary closing conditions.
“Audax was aligned with our mission and vision to transform urology through continuous innovation and a model that enables access to high-quality value-based care and preserves the autonomy of our partner practices,” UUG Chief Executive Officer Ian Wong said in a press release. “We’re excited to join forces with OneOncology, whose values and culture mirror our own.”
United Urology Group is a large player in the urology care market, supporting around 250 physicians and advanced practice providers across multiple states, including Arizona, Colorado, Delaware, Maryland and Tennessee. UUG’s network consists of physician-owned practices and ambulatory surgery centers (ASCs), urologic care and ancillary services such as uropathology, radiation therapy and pharmacy.
UUG has roughly two dozen ASCs, with examples being its Colorado Urologic Surgery Center locations, its Tucson Urologic Surgery Center locations and its Summit Ambulatory Surgery Center locations, among others.
“We anticipate this combination will benefit both our physicians and their patients, while driving meaningful improvement to patient care,” Wong continued.
Boston-headquartered Audax Private Equity manages approximately $19 billion in assets and has invested in more than 170 platform companies since its founding in 1999. The firm, which partnered with UUG in 2016, has invested in a range of companies that, like UUG, focus on improving care delivery and patient outcomes.
Among its health care portfolio are companies that specialize in areas like diagnostics, medical devices and specialty physician practices.
“Our investment thesis — across each of our health care investments — is to back companies focused on improving access to care and patient outcomes, while reducing costs for payers and the health care system at large,” Adam Abramson, a partner at Audax Private Equity, said in a press release. “UUG fits this archetype categorically, and we expect its physician-led culture and patient-first approach to complement OneOncology’s community of oncologists, who share the same commitment to clinical excellence.”
The buyer, OneOncology encompasses over 1,300 cancer care providers across more than 420 sites nationwide, caring for approximately 787,000 patients. In 2023, OneOncology was acquired by a joint venture between TPG, a global alternative asset management firm, and AmerisourceBergen, a leading pharmaceutical services company, in a deal valued at $2.1 billion.
The acquisition is yet another example of M&A and JV activity in the broader ambulatory surgery center and health care markets.
Recently, for example, ChristianaCare, a large health system, partnered with Atlas Healthcare Partners to develop a major network of ASCs across Delaware, Maryland, New Jersey and Pennsylvania. This venture aims to establish over 10 centers in the next five years.
And Surgery Partners Inc. (Nasdaq: SGRY), one of the leading ASC operators in the U.S., deployed nearly $280 million on strategic acquisitions, including a $60 million deal in January, through the end of the second quarter.
