NovaMed Buying Calif. Surgery Center

The Chicago-based company vaults into the biggest market in the nation.
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NovaMed (NOVA) - Get Report reached a definitive agreement to take a 51% interest in the Center for Outpatient Surgery, a multispecialty ambulatory surgery center in Whittier, Calif.

Terms weren't disclosed, but NovaMed said it anticipates completing this acquisition within 60 days upon receiving the required licensure approvals from the State of California, and upon other routine closing conditions being satisfied. This will be NovaMed's first surgery center in California, the state with the largest number of surgery centers in the country.

"This acquisition provides us with the opportunity to enter the attractive southern California market in partnership with five highly respected local physicians," said finance chief Scott T. Macomber. "In the last 12 months, over 6,000 surgical procedures were performed at this surgery center including ophthalmic, gastrointestinal, orthopedic and pain-management procedures. We expect this acquisition to be immediately accretive to our earnings upon closing, and we look forward to working with our new partners to realize the center's full growth potential."

Chicago-based NovaMed acquires, develops and operates ambulatory surgery centers in partnership with physicians. Upon the closing of this transaction, NovaMed will have ownership interests in 28 surgery centers in 15 states.

On Wednesday, its shares rose 8 cents to $6.98.