TeamHealth Holdings (NYSE: TMH) announced today that the company will be acquiring IPC Healthcare (NASDAQ: IPCM) for $1.6 billion. TeamHealth will be offering $80.25 for every IPC share, a premium of 37.3% relative to IPC’s closing price this past Monday.
TeamHealth, based out of Knoxville, Tennessee, is one of the country’s largest suppliers of healthcare professionals. IPC Healthcare operates a national physician group practice specializing in providing post-acute care services.
The acquisition is expected to be finalized by the fourth quarter of 2015 and the newly combined company is expected to have a network of 15,000 healthcare professionals. Both Boards of Directors have approved the acquisition.
TeamHealth’s President and CEO, Mike Snow, commented on the acquisition, “We are excited to announce this strategic transaction with IPC Healthcare to create the leading physician services organization spanning multiple specialties. Through this combination, TeamHealth will be better positioned to capitalize on key trends as the U.S. healthcare industry moves toward value-based reimbursement with an increased focus on post-acute care and services. 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.”
Shares of TeamHealth are currently down more than 4% while IPC shares are up almost 36% as we approach the end of the trading day.