- Envision Healthcare and AmSurg announced late Wednesday their intent to merge, thus creating a combined company will have a $10 billion market capitalization.
- The merger will create one of the larger physician-staffing companies in the U.S.
- The transaction has been unanimously approved by the Boards of Directors of both companies.
Envision shareholders will own approximately 53% percent and AMSURG shareholders will own approximately 47% percent of the combined organization on a fully diluted basis, including preferred shares, the companies noted in a prepared statement, adding, the two companies had combined revenue of more than $8.5 billion and Adjusted EBITDA of more than $1.1 billion for the 12 months ended March 31.
MarketWatch noted AmSurg shares rose while Envision shares fell in the extended session following the merger announcement.
The combined company will be named Envision Healthcare Corporation and co-headquartered in Nashville, Tennessee and Greenwood Village, Colorado.
"Consolidation waves have swept through the hospital and health-insurance industries in recent years, part of a broader surge in deal making," The Wall Street Journal stated, adding, "That has put pressure on companies like AmSurg to seek tie-ups that will enable them to maintain size and scope needed to keep up with customers, rivals and suppliers."
Last year, AmSurg repeatedly tried to woo TeamHealth, a physician staffing company, into its portfolio. Now, it looks like the ambulatory surgery center management company has finally found its match with Envision, which provides outsourced healthcare services.
Last November, Envision purchased Arizona-based Rural/Metro, an ambulance service company, for $620 million. Plans for the acquisition were announced in July.