Surgery Partners Raises HealthSpan Buyout Offer to $25 Per Share
Surgery Partners and HealthSpan Partners amended their merger agreement on November 9, raising the cash offer to $25.00 per share. The revised terms could provide as much as $1.61 per share in additional ticking fees after March 1, 2027, putting the deal’s potential value at approximately $6.0 billion. Surgery Partners’ board backed HealthSpan’s proposal over an unsolicited $28.00-per-share rival bid, citing greater closing certainty and lower regulatory risk.
Why it matters
The amendment increases the consideration for Surgery Partners shareholders but leaves them exposed to shareholder approval, regulatory clearance and other closing conditions. Mizuho downgraded the stock to Neutral while raising its price target to $25.00, saying the board’s recommendation and Bain Capital’s support make approval likely.
Key facts
- 1The amended agreement pays $25.00 per share in cash if completed before March 1, 2027. rttnews.com
- 2Eligible shareholders may receive up to an additional $1.61 per share in ticking fees, for potential consideration of $26.61 per share. rttnews.com
- 3Bain Capital affiliates own approximately 39% of Surgery Partners’ outstanding shares and support the merger. rttnews.com
- 4A third party offered $28.00 per share in cash, but Surgery Partners’ board unanimously recommended the HealthSpan agreement. rttnews.com
- 5Mizuho cut its rating to Neutral from Outperform and raised its price target to $25.00 from $19.00. investing.com
Open questions
- Closing timing is described inconsistently: one report cites October 23, 2027, while other materials describe an expected completion in the first quarter of 2027.
Summary written by AlphAI AI Desk from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.