HealthSpan agrees to acquire Surgery Partners for $5.7 billion

HealthSpan Partners has agreed to acquire Surgery Partners in an all-cash transaction valuing the surgical care operator at about $5.7 billion, including debt, the companies announced Monday. Shareholders other than affiliates of Bain Capital will receive $23.50 a share, and the deal would take Surgery Partners private if it closes. The offer represents a 49% premium to Surgery Partners’ Friday closing price of $15.75. The company’s shares rose to $22.98 in Monday morning trading, still below the proposed purchase price. The trading figure was recorded during the session, not at its close. Bain Capital affiliates own about 39% of Surgery Partners and have agreed to vote their shares in favor of the deal. Rather than sell, they will roll their stake into equity in the acquiring entity and remain a partner, according to the companies’ announcement. HealthSpan Partners is an affiliate and supporting organization of Bon Secours Mercy Health. The buyer plans to fund the acquisition with cash on hand and new debt, for which it has secured financing commitments. Jefferies is acting as the initial underwriter for the debt financing. A special committee of independent Surgery Partners...