Shares in Envision Healthcare Holdings Inc (NYSE:EVHC) surged in pre-market trading as rumours swirled that it was in merger talks with Amsurg Corp (NASDAQ:AMSG).
Advertisement
The merger would increase operating efficiency and profit margins for the two companies, sources familiar with the matter told Reuters, at a time when consolidation among health insurance companies and hospitals places downward pressure on costs throughout health care. It has a market value of about $4.4 billion. The Wall Street Journal said a deal with Envision could be announced as early as next week. If consummated, the union would create one of the largest outsourced physician services provision groups in the US.
The companies’ combined value may surpass $9 billion.
Both companies provide physician services, and Envision is a major ambulance and medical-transportation operator through its American Medical Response division.
Advertisement
About 7.29 million shares of Envision have been traded so far today vs. its average trading volume of roughly 2.29 million shares per day. Team Health rebuffed the offer, and AmSurg eventually withdrew the bid.
