TeamHealth to acquire IPC Healthcare for $1.6bn
"We are excited to announce this strategic transaction with IPC Healthcare to create the leading physician services organization spanning multiple specialties," said TeamHealth president and chief executive officer, Mike Snow. "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. Together with IPC Healthcare, we will create an industry leader in the hospital based and post-acute settings with an expanded network of services and solutions that will better support TeamHealth's affiliated clinicians and hospital partners and drive long-term shareholder value."
Snow continued, "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. 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."
"This agreement provides an immediate cash premium to our shareholders, and we look forward to partnering with TeamHealth to advance our mission of delivering high-quality inpatient care efficiently and cost-effectively," said IPC Healthcare chief executive officer,Adam Singer. "Both TeamHealthand IPC Healthcare are physician centric organizations with strong track records of delivering superior solutions to our healthcare provider partners nationwide. We look forward to being a critical contributor to the future growth strategy and value creation for TeamHealth while creating new and exciting opportunities for our valued employees."