Denver-based Envision Healthcare Holdings and Nashville, Tenn.-based AmSurg Corp. have agreed to merge, creating a healthcare services company worth $10 billion.
AmSurg provides physician outsourcing services to hospitals and healthcare organizations and operates more than 200 ambulatory surgical centers. Envision has a physician-staffing unit and provides medical transportation services.
Here are seven things to know about the transaction.
1. The all-stock deal has a fixed exchange ratio of 0.334 AmSurg shares per Envision share.
2. Envision shareholders will own about 53 percent of the combined company named Envision Healthcare Corp. AmSurg will own the remaining 47 percent.
3. The new company will have dual headquarters in Nashville and Greenwood Village, Colo.
4. Envision and AmSurg had revenue of more than $8.5 billion in the 12 months ended in March. Through cost savings and other benefits, the companies said they expect the combination to result in $100 million of synergies within three years.
5. Upon closing of the transaction, William A. Sanger will become executive chairman of the combined company. He currently serves as president, CEO and chairman of the board of Envision.
6. Christopher A. Holden will serve as president and CEO of the combined company, the same positions he holds at AmSurg.
7. Mr. Sanger expressed excitement about the deal. "Our two organizations complement each other in a way few others could, and this merger will accelerate our collective ability to positively impact healthcare delivery across the country," he said.
Mr. Holden added, "This merger will create a national platform with a highly differentiated suite of solutions. It will significantly increase our ability to empower physicians and expand our client relationships."
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