Team Health Holdings, Inc., a leading provider of outsourced physician staffing solutions for hospitals in the United States, announced that it has agreed to acquire IPC Healthcare, Inc. in an all cash transaction for about $1.6 billion, or $80.25 per share, according to the press release issued by Team Health.
Reuters adds that the per share price represents a 37.3 percent premium over IPC's Monday closing price of $56.46.
The deal will expand Team Health's services and improve its offerings of physicians.
IPC Healthcare, a leading national acute hospitalist and post-acute provider organization, gives Team Health access to its service network, expanding the reach and services the company can offer, according to the press release.
The deal also improves Team Health's offerings of physicians, allowing it to offer a more diverse set of doctors spanning multiple specialties.
IPC Healthcare also gives Team Health a leadership position in the post-acute care and services industry, where IPC has the leading platform, according to the press release. The deal will give Team Health access to IPC Healthcare's approximately 2,000 post-acute facilities spread across 28 states.
Mike Snow, president and chief executive officer (CEO) of Team Health, said in the press release that they are excited about the "strategic transaction."
"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," he said.
Snow continued that Team Health and IPC Healthcare "will create an industry leader in the hospital based and post-acute settings with an expanded network of services and solutions," according to the press release.
The combination "will better support TeamHealth's affiliated clinicians and hospital partners and drive long-term shareholder value," he added.
In addition, a Reuters report stated that IPC's shares were at $79.20 during premarket trading on Tuesday, and Team Health's shares were up by 4.9 percent.
The deal, which will be accretive to Team Health's earnings, is expected to close during the fourth quarter of 2015.
