Physician outsourcing firm EmCare has purchased
Phoenix Physicians in a $170 million cash transaction.
EmCare, a subsidiary of publicly traded Envision Healthcare, also will assume certain liabilities, according to filings with the Securities and Exchange Commission
. The deal is expected to close in two weeks.
Phoenix Physicians, headquartered in Fort Lauderdale, Fla., specializes in outsourcing emergency department and other physician specialty services. The firm includes more than 500 physicians and clinicians
, and operates in 21 acute-care hospitals in six states.
“Phoenix Physicians' strong leadership team, history of organic growth, long-term customer satisfaction track record and geographic footprint allow us to continue our market-centric strategy to develop new hospital and health system relationships that can enhance our growth opportunities,” EmCare CEO Todd Zimmerman said in a news release.
The deal is expected to boost Envision's revenue by $125 million annually, a modest addition to overall company revenue. In fiscal 2013, Envision recorded $6 million in net income on revenue of more than $3.7 billion. EmCare represented almost $2.4 billion of total revenue.
Since Envision Healthcare went public
last August, company shares have soared approximately 43%. As of 1:30 p.m. EDT Wednesday, shares were trading at $35.76.Follow Bob Herman on Twitter: @MHbherman