KNOXVILLE (WATE) – TeamHealth has entered into a merger agreement with by Blackstone Investment group in a $6.1 billion transaction.
Team Health Holdings, Inc., located in Knoxville, is a hospital staffing firm that is one of the largest suppliers of healthcare professional staff in the United States. The transaction, which is subject to the receipt of TeamHealth stockholder approval, regulatory approvals and other customary closing conditions, is expected to close in the first quarter of 2017.
As part of the deal, TeamHealth stockholders will receive $43.50 per share, approximately 33 percent over the last trading day prior to the new reports that the company was considering a possible sale. Following completion of the transaction, TeamHealth will become a privately held company, wholly owned by funds affiliated with Blackstone, and will no longer be traded on the New York Stock Exchange.
“We are pleased to reach this agreement with Blackstone, which maximizes value for all TeamHealth stockholders,” said Leif Murphy, President and Chief Executive Officer of TeamHealth. “We remain committed to delivering the highest quality patient care and supporting our affiliated clinicians, hospital and post-acute partners. Blackstone is focused on working closely with TeamHealth to achieve our strategic objectives and drive innovation and operational excellence in the context of the evolving U.S. healthcare marketplace. We continue to believe that TeamHealth is uniquely positioned to leverage our national scale and functional expertise to drive high quality patient care, operational efficiencies and physician satisfaction in hospital-based and post-acute settings.”
TeamHealth’s Board of Directors recommends that stockholders approve the agreement. The merger agreement includes a “go-shop” period, during which TeamHealth and its Board of Directors may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals during a 40-day period following the execution date of the definitive agreement.