Qualtrics Inc. said it signed a definitive agreement to invest $6.75 billion to acquire healthcare technology company Press Ganey Forsta, the business name of Press Ganey Associates LLC.

The deal is Qualtrics’ largest acquisition to date and paves the way for the company to expand broadly into the healthcare market.

Press Ganey Forsta specializes in improving “human experiences,” or the way people feel about their interactions with a business, hospital or brand. The company boasts over 41,000 clients in 30 countries, and is used by 85% of U.S. health plans.

Qualtrics helps organizations measure, analyze and improve the experiences of constituents ranging from customers and employees to products and brands using data and artificial intelligence. It’s widely recognized as the creator of the “experience management” category.

Qualtrics said its goal is to create a comprehensive AI platform for customer, patient and employee experience by combining Qualtrics’ technology with Press Ganey Forsta’s benchmarking, analytics and consulting capabilities. It said the combination will accelerate the adoption of artificial intelligence in experience management, delivering insights that can be quickly turned into action across a wide range of industries.

“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,” Qualtrics Chief Executive Zig Serafin said in a statement.

Press Ganey Forsta said its expertise in regulatory compliance and clinical protocols will complement Qualtrics’ AI-based tools, which are already used by 90% of Qualtrics’ top 50 enterprise clients.

Press Ganey Forsta is owned by asset management firm Ares Management Corp. and private equity company Leonard Green & Partners LP. Qualtrics will finance the acquisition with a combination of cash and equity. The deal is termed an “investment to acquire” because the necessary regulatory approvals and customary closing conditions haven’t yet been received. The acquisition is expected to close in the coming months. Until then, both companies will continue to operate independently.

Qualtrics was taken private by Silver Lake Technology Partners LP and Canada Pension Plan Investment Board for $12.5 billion in 2023. The company has grown rapidly since then, generating more than $500 million in free cash flow over the past 12 months, according to the Financial Times.

It issued quotes by industry leaders in healthcare and transportation cheering the deal. Rob Allen, president and CEO of Intermountain Health, called the acquisition “a groundbreaking move for healthcare that will positively transform healthcare experience and quality for the future.” Lou Reinemann, research director at International Data Corp., said the deal is “a transformational moment” for the entire experience management space, addressing “the biggest barriers to AI adoption: trust, relevance, and industry expertise.”

Financial advisers to Qualtrics include JPMorgan Chase Bank NA, Goldman Sachs Group Inc., KKR & Co. LP and Morgan Stanley and Co. LP, among others. Press Ganey Forsta is advised by Barclays PLC and Moelis & Co.

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