AmSurg Seeks To Merge With TeamHealth In $7.8 Bln Deal

(RTTNews) - AmSurg Corp. (AMSG) Tuesday said it proposed to merge with Team Health Holdings, Inc. (TMH). If the deal is concluded successfully, the combined company will have a 50:50 ownership.

Upon completion of the transaction, the new company will assume TeamHealth name and Chief Executive Officer of AmSurg Christopher Holden will be the chief executive of the combined company.

TeamHealth shareholders will receive cash consideration of  $11.49 per share. The deal has a total enterprise value of $7.8 billion, representing 36 percent current premium to TeamHealth shareholders.

AmSurg expects the transaction to immediately add to its earnings based on annual synergies of $200-$290 million.

Holden said, "Our proposed combination will be transformational for both AmSurg and TeamHealth shareholders as well as for the physician services sector as a whole. TeamHealth shareholders will receive immediate cash value equivalent to 22% of its market capitalization, and share equally in our combined company's upside."

Guggenheim Securities and J.P. Morgan Securities LLC are financial advisors to the deal. Bass, Berry & Sims PLC is acting as legal counsel to AmSurg.