Encore Medical ( ENMC) is being purchased by acquisitive private-equity firm Blackstone Group in a deal that will end with the maker of orthopedic devices going private.

A newly formed company controlled by Blackstone Capital Partners V will pay $870 million, or $6.55 in cash for each share of Encore Medical. The price represents a 36% premium to the Nasdaq closing price of $4.81 on June 30.

Members of Encore's existing senior management team will retain their current positions after the transaction closes and will have an ownership stake in the remaining company.

Blackstone has taken part in a number of buyouts this year, including recent deals for Michaels Stores ( MIK), Trizec Properties ( TRZ) and Cendant's ( CD) sale of its Travelport division.

The agreement was announced after the markets had closed Friday. When trading began Monday, Encore surged $1.47, or 30.6%, to $6.28. During the past year, the stock has traded between $4.41 and $6.45.

"This transaction offers outstanding value for our stockholders with a significant premium over where our stock has traded during the past year. It also provides Encore with a strong financial partner with knowledge of the healthcare industry to assist in our future growth," said Kenneth Davidson, CEO and chairman of Encore Medical.

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