Radiation Therapy Services ( RTSX) shares surged more than 43% Monday on news the health care company has agreed to a $764 million buyout. The Fort Myers, Fla.-based company said after Friday's market close that it agreed to be acquired by private equity firm Vestar Capital Partners for $32.50 a share. The price represents a 51% premium to Radiation Therapy Services' Friday closing price of $21.56. The company said the deal is worth $1.1 billion including debt. Radiation Therapy Services' board approved the merger agreement on the unanimous recommendation of a special committee of independent directors. The company's senior management own around 40% of the company's fully diluted shares and have pledged in the agreement to vote their shares in favor of the transaction. The deal is expected to close in the first quarter of 2008, subject to shareholder approval. Radiation Therapy Services operates radiation treatment centers primarily under the name 21st Century Oncology, providing radiation therapy services to cancer patients. Shares added $9.36 to $30.92 in recent trading.
Stocks soar as the gross domestic product rises at an annualized rate of 3.5% in the third quarter and continuing jobless claims fall. Gregg Greenberg recaps the action in The Real Story video (above).