The publicly traded Nashville-based company AmSurg, which develops and operates surgery centers, has agreed to buy its smaller, Dallas-based rival National Surgical Care for $173.5 million in cash.
AmSurg Corp agreed to buy smaller rival National Surgical Care for $173.5 million in cash to add more multi-specialty ambulatory surgery centers to its portfolio.
Dallas, Texas-based National Surgical Care operates 18 ambulatory surgery centers, including 16 multi-specialty centers.
AmSurg, which expects to complete the transaction by the end of the second quarter, said it plans to fund the deal with available cash and additional borrowings.
AmSurg, which expects the deal to add to its 2012 results, said it will continue working to meet its 2011 outlook for adding 18 to 20 new centers, which did not include this transaction.
AmSurg shares were up 6 percent at $27.30 on Thursday on Nasdaq. (Reporting by Anand Basu in Bangalore; Editing by Sriraj Kalluvila)