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Blackstone to acquire TeamHealth in $6B deal

The board of TeamHealth, a Knoxville, Tenn.-based physician services organization, unanimously approved an agreement to be acquired by Blackstone — a private equity, investment banking and asset management corporation — for $6.1 billion, including debt and other factors.

The company alone will sell for $3.2 billion, The Wall Street Journal reports.

"Blackstone is one of the world's leading investment firms and will be a tremendous capital partner to help accelerate TeamHealth's growth priorities and fund our long-term initiatives as we continue to execute on our strategic priorities," Lynn Massingale, MD, co-founder and executive chairman of TeamHealth, said in a press release. "As a prior owner of TeamHealth, Blackstone knows TeamHealth and the U.S. healthcare industry well and will work with us to create value for all our stakeholders over the long-term. We are very proud of our team and believe this investment is a testament to the underlying strength of the organization and the thousands of skilled and dedicated clinicians who choose to be part of TeamHealth."

Blackstone and its co-investors will acquire the outstanding shares of the TeamHealth's common stock for $43.50 per share — which tops the closing share price on Oct. 3 by about 33 percent. Oct. 3 was the last trading day before news reports broke that TeamHealth was considering a sale.The transaction still requires TeamHealth stockholder approval, regulatory approval and other closing conditions. The firms expect the deal to close in the first quarter of 2017, upon which TeamHealth will become a private company and its stocks will no longer be traded on the New York Stock Exchange.

TeamHealth will hold a meeting for its stockholders to vote on the acquisition and the agreement, which includes a "go-shop" period. This 40-day period allows TeamHealth and its board of directors to consider and even enter negotiations with alternate parties after the definitive agreement. The company has said it will not provide details about this process until all decisions have been made in regards to any other proposals that result from it.

 

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