NEW YORK (TheStreet) -- AmSurg Corp. (AMSG) said it will pay about $2.35 billion to buy Sheridan Healthcare in a cash and stock deal that adds physician outsourcing services to the ambulatory surgery center operator's portfolio, the Associated Press reports.
Shares of AmSurg are up 12.15% to $48.00 in pre-market trade.
Sheridan Healthcare employs more than 2,400 doctors and provides services to hospitals, ambulatory surgery centers and other locations. That includes anesthesiology, radiology and emergency medicine services. It is owned by the private equity firm Hellman & Friedman, the AP said.
AmSurg Corp. says it plans to issue about $615 million in AmSurg stock to Sheridan equity holders as part of the cash-stock deal. But it may replace most of that with cash before the deal closes in the third quarter.
TheStreet Ratings team rates AMSURG CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMSURG CORP (AMSG) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."