Knoxville, Tenn.-based physician staffing company TeamHealth announced Tuesday an agreement to acquire IPC Healthcare in an all-cash transaction with an enterprise value of $1.6 billion.
Here are six things to know about the deal.
1. The acquisition is expected to close during the fourth quarter of 2015. It is still subject to regulatory approval.
2. Combined, the companies will provide physician staffing services across multiple specialties from a network of 15,000 healthcare professionals.
3. They will also strengthen their position in the post-acute market; marry emergency department and hospitalist staffing to better manage transitions of care; enhance revenue and EBITDA growth profiles; and potentially realize at least $60 million of combined cost and revenue synergies in the next three years.
4. North Hollywood, Calif.-based IPC Healthcare is an acute hospitalist and post-acute provider organization with more than 1,900 employed clinicians. IPC-affiliated physicians and other clinical providers practice in over 400 hospitals and 1,700 post-acute care facilities.
5. TeamHealth has more than 14,000 affiliated healthcare professionals providing emergency medicine, hospital medicine, anesthesia, urgent care, and pediatric staffing and management services to approximately 1,000 civilian and military hospitals, clinics and physician groups in 47 states.
6. "We believe this combination, which will be accretive to TeamHealth's earnings, will result in an enhanced financial profile, allowing for strong cash flows and deleveraging, along with ongoing financial flexibility to fund future growth," TeamHealth President and CEO Mike Snow said in a statement. "This transaction ensures that we extend TeamHealth's competitive position, and we are confident that together we will create a more powerful platform from which to deliver significant value creation for our patients, physicians and other stakeholders."
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