St. Louis-based RehabCare Group, a provider of physical-rehabilitation-program management services, has entered into an agreement to acquire competitor Symphony Health Services for $101.5 million. The deal needs Federal Trade Commission approval and is expected to close by July 1. John Short, president and chief executive officer of RehabCare, doesn't expect any FTC holdup because combined the companies make up just 10% of the fragmented market. Still, he added, the combined company will be one of the largest providers of rehabilitation-management services with programs at 1,400 long-term-care facilities and 15,000 employees. Symphony, a privately held company, has annual revenue of $230 million and provided rehabilitation-management services at 600 long-term-care facilities. About 100 jobs will be cut from such departments as information technology, human resources and accounting; and Symphony will relocate its Hunt Valley, Md., offices to St. Louis, the companies said. Scott Jones, president and CEO of Symphony since December 2004, will manage the companies' integration, which is expected to take six to 18 months. After the transition, executives will decide if Jones stays with RehabCare, Jones said. RehabCare had $454 million in revenue in 2005, according to Securities Exchange Commission filings. -- by Joseph Mantone
RehabCare Group plans to buy Symphony Health
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