ExamWorks Group Inc (EXAM.N), a provider of independent medical examination services for insurers, legal firms and government agencies, said on Wednesday it would be bought by private equity firm Leonard Green & Partners in a deal valued at $2.2 billion.
The offer price of $35.05 per share in cash is a premium of 4.4 percent to ExamWorks’ closing price on Tuesday.
Based on outstanding shares on Feb. 16, the equity value of the deal is $1.44 billion.
Atlanta-based ExamWorks verifies illnesses and injuries and reviews medical records and bills to support insurance claims.
The deal is expected to close by the third quarter.
ExamWorks’ revenue rose 5.6 percent to $820 million in 2015 but net income fell 47 percent to $56 million.
Up to Tuesday’s close, the company’s stock had risen about 26 percent this year.
Goldman Sachs and Evercore Group are financial advisers to ExamWorks, while Paul Hastings LLP is legal adviser.
Fully committed debt financing is being provided to Leonard Green by BofA Merrill Lynch, Barclays and Deutsche Bank Securities, which are also acting as financial advisers. The firm’s legal adviser is Latham & Watkins LLP.
(Reporting by Natalie Grover and Siddharth Cavale in Bengaluru; Editing by Ted Kerr)
Photo: John Danhakl, Managing Partner, Leonard Green & Partners, LP, takes part in Private Equity: Rebalancing Risk session during the 2014 Milken Institute Global Conference in Beverly Hills, California April 29, 2014. REUTERS/Kevork Djansezian.