Ambulatory surgery center operator Amsurg Corp said it would buy Sheridan Healthcare Inc from private equity firm Hellman & Friedman LLC for about $2.35 billion in cash and stock to enter the outsourced physician services market.
Amsurg, which runs 242 surgery centers in the United States, said the deal would help it outsource physicians for services such as anesthesia, children's health, emergency medicine and radiology.
Sheridan, acquired by Hellman & Friedman in 2007, employs more than 2,400 physicians and other healthcare professionals in 25 states.
The combined company is expected to have 4,600 physician relationships across 38 states and cater to $70 billion market, Amsurg said.
The company said it would pay about $615 million in stock and had secured financing from Citi, who is also its financial adviser for the deal.
The acquisition, expected to close in the third quarter, will immediately add to Amsurg's adjusted earnings and cash flow, the company said.
Sheridan was reported last month to have hired banks for an initial public offering.
Nashville, Tennessee-based Amsurg's stock closed at $42.80 on the Nasdaq on Wednesday.
Bass, Berry & Sims PLC is Amsurg's legal counsel. Barclays, Credit Suisse and Goldman Sachs & Co. are Sheridan's financial advisers and Simpson Thacher & Bartlett LLP is providing legal counsel.
(Reporting by Esha Dey in Bangalore; Editing by Saumyadeb Chakrabarty and Savio D'Souza)