Team Health Holdings Inc. said Tuesday it is buying IPC Healthcare Inc.in an all-cash deal with an enterprise value of approximately $1.6 billion or $80.25 per share.
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IPC, based in North Hollywood, Calif., is a national acute-care hospital and post-acute-care provider organization.
“We are excited to welcome the talented physicians and certified registered nurse anesthetists of Brookhaven Anesthesia Associates to TeamHealth”, said Michael D. Snow, president and CEO of TeamHealth.
According to TeamHealth, the deal means the combined company will employ 15,000 healthcare professionals. That will help TeamHealth provide a more diverse set of services as the U.S. government reimburses health-care providers based on the outcomes of treatment rather than individual procedures.
The deal, likely to close in the fourth quarter of 2015, is expected to add to TeamHealth’s adjusted earnings in 2016. “Together with IPC Healthcare, we will create an industry leader in the hospital based and post-acute settings with an expanded network of services and solutions that will better support TeamHealth’s affiliated clinicians and hospital partners and drive long-term shareholder value”.
The deal will allow TeamHealth to broaden the range of services it offers and improve its network of physicians.
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Citi served as financial adviser to TeamHealth, while Credit Suisse was financial adviser to IPC.
