Surgery Partners plans to acquire Symbion for $792 million, a move that will add to consolidation in the physician
surgery center market.
The combined company will own and operate about 100 ambulatory surgery centers and surgical hospitals with physician partners in 27 states.
Both surgery center companies are backed by private-equity firms. HIG Capital acquired Surgery Partners in 2010, when the ASC company was about a quarter of its size today, and Crestview Partners bought Symbion in 2007
. Officials with each group were not immediately available to comment.
“Our model focuses on high quality, patient-centric care through multiple inpatient and outpatient services lines, and now has the opportunity to apply it to a larger geographic footprint as a result of this combination,” Mike Doyle, CEO of Surgery Partners, said in a news release. “The acquisition of Symbion provides an opportunity to build a larger, diversified portfolio of assets while also offering a compelling integrated-care model which drives efficiency by cost-effective design.”
Nashville, Tenn.-based Symbion recorded more than $535 million of revenue in fiscal 2013. Surgery Partners, headquartered in Chicago and Tampa, is smaller with annual revenue around $280 million, according to Moody’s Investors Service. The merger will put the company closer in terms of total ASCs operated and revenue to competitors Amsurg Corp., United Surgical Partners International and Surgical Care Affiliates.Follow Bob Herman on Twitter: @MHbherman