Surgery Partners, Inc. (NASDAQ:SGRY), an outpatient surgery operator, skyrocketed after agreeing to a $5.7 billion acquisition by HealthSpan Partners.
Public shareholders, excluding Bain Capital affiliates, will receive $23.50 per share in cash.
• Surgery Partners stock is showing exceptional strength. Why is SGRY stock surging?
$23.50-Per-Share Deal
Bain Capital, which owns about 39% of Surgery Partners, will roll over its stake into the acquiring entity and remain a significant investor after the transaction closes.
The companies expect to complete the deal in the first quarter of 2027, subject to shareholder and regulatory approvals and other customary closing conditions.
The merger requires approval from a majority of outstanding shares entitled to vote and a majority of votes cast by disinterested shareholders.
HealthSpan Partners plans to finance the acquisition with cash on hand and new debt. The company has secured financing commitments, and the merger is not subject to a financing condition.
The agreement also includes a $108.99 million termination fee under specified circumstances and an outside closing date of July 23, 2027, subject to certain extensions.
Surgery Partners To Go Private
After closing, Surgery Partners will retain its name, brand and headquarters. Its shares will stop trading on Nasdaq, and the company will become privately held.
The combination will create one of the country’s largest outpatient surgical care platforms.
Surgery Partners brings more than 200 locations across 30 states and approximately 5,000 affiliated physicians.
Its network includes ambulatory surgery centers, surgical hospitals and physician partnerships across orthopedics and spinal care, cardiology, gastroenterology and ophthalmology.
Board Backs Transaction
A special committee composed entirely of independent and disinterested Surgery Partners directors led the negotiations. The Surgery Partners board approved the transaction following the committee’s unanimous recommendation.
“Joining HealthSpan Partners represents an exciting next chapter for Surgery Partners,” said CEO Eric Evans.
“We believe this transaction represents the best path forward for Surgery Partners, delivering an attractive all-cash premium to our shareholders while creating lasting benefits for our patients, physicians and other stakeholders.”
SGRY Stock Price Activity: Surgery Partners shares were up 46.32% to $23.05 at the time of publication on Monday, according to Benzinga Pro data.
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