UnitedHealth to Buy Surgical Care Affiliates in $2.3B Deal
UnitedHealth Group's Optum unit said it would buy Surgical Care Affiliates for about $2.30 billion, creating a comprehensive ambulatory care services platform, including primary care, urgent care and surgical care services.
Surgical Care and its affiliates, which serve about 1 million patients per year in more than 30 states, operate 205 surgical facilities, including ambulatory surgery centers.
The fixed offer of $57 per share, represents a premium of 17 percent to Friday's close.
The transaction is expected to be neutral to UnitedHealth's forecast for 2017 adjusted net earnings and modestly add to its 2018 earnings, the companies said on Monday.
Affiliates of TPG Capital, which own about 30 percent of Surgical Care Affiliates, have agreed to tender their shares as part of the offer.
The deal will be funded between 51 percent to 80 percent with UnitedHealth stock, and the remainder in cash.
UnitedHealth's Optum business manages drug benefits and offers healthcare data analytics services.
(Reporting by Ankur Banerjee in Bengaluru; Editing by Shounak Dasgupta)