KKR Buying Envision Healthcare for $9.9 Billion
KKR's Henry Kravis

It's a done deal. 

After a seven-month strategic review, healthcare services company Envision Healthcare Corp. (EVHC) said Monday, June 11, it has agreed to sell to private equity firm KKR & Co. (KKR) for about $9.9 billion, including the assumption or repayment of debt.

The announcement came on the heels of a Reuters report on Sunday that the two were close to making a deal.

KKR will pay $46 a share, marking a 32% premium to Envision's volume-weighted average share price  from Nov. 1, 2017, the day after the company announced it had launched a review of strategic options. The cash offer amounts to approximately $5.5 billion.

The price tag translates to a multiple of 10.9 times trailing 12 months adjusted Ebitda and 10.1 times 2018 anticipated adjusted Ebitda, according to the announcement.

Shares of Envision were trading at $44.83 in early morning trading on Monday, up 2.7%.

Envision knows KKR well. In August of last year, Envision agreed to sell its medical transportation unit, American Medical Response, to KKR-backed Air Medical Group Holdings in a deal completed in March.

Envision, based in Nashville, Tenn., and Greenwood Village, Colo., provides physician-led services and post-acute care, as well as ambulatory surgery services. Envision on Oct. 31 said it had launched a review of strategic options.

The review process involved outreach to 25 potential acquirers, including financial sponsors and strategics, Envision said in Monday's announcement, adding that proposals were invited for the entire business or parts of it.

The transaction is expected to close in the fourth quarter.

Editor's note: The full version of this article was published by The Deal, a sister publication of TheStreet that offers sophisticated insight and analysis on all types of deals, from inception to integration. Click here for a free trial.

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