Updated from 8:18 AM EDT.

NEW YORK (TheStreet) -- Shares of TeamHealth (TMH) were surging 16.24% to $42.78 on heavy trading volume late Monday afternoon after the company agreed to be bought by funds affiliated with asset manager Blackstone (BX) in a $6.1 billion deal.

Under the terms of the deal, Blackstone and its co-investors will buy the Knoxville, TN-based physician services company for $43.50 per share in cash.

The deal represents a premium of about 33% over TeamHealth's closing share price on October 3, which is the last trading day before reports that the company was considering a potential sale.

"We are pleased to reach this agreement with Blackstone, which maximizes value for all TeamHealth stockholders," TeamHealth CEO Leif Murphy said in a statement, "We remain committed to delivering the highest quality patient care and supporting our affiliated clinicians, hospital and post-acute partners."

The transaction is expected to close in the first quarter of 2017 and is subject to stockholder and regulatory approval.

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More than 19.47 million of the company's shares traded so far today compared to its average 30-day volume of 1.31 million shares.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on TeamHealth.

The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations.

But the team also finds weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: TMH

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