AmSurg and Envision Healthcare have agreed to combine forces, creating one of the largest physician staffing companies in the country.
In addition to a physician staffing business, Nashville-based AmSurg would contribute more than 250 ambulatory surgery centers to the combined company. Envision Healthcare has a large physician-staffing unit as well as major national presence in ambulance services.
The deal is an all-stock transaction. Envision shareholders will obtain 53% of the new company and AmSurg shareholders 47%. The new company will be called Envision Healthcare Corp., the companies said in a news release Wednesday.
The two companies had combined revenue of more than $8.5 billion and EBITDA of $1.1 billion for the 12 months ended March 31.
Combined, the companies have a market capitalization of $10 billion and an enterprise value, which includes all assets, of $15 billion.
The companies said they expected about $100 million in synergies by combining the businesses. The combined company will be co-headquartered in Nashville and Greenwood, Colo.
Envision CEO William Sanger will be executive chairman of the new company, and AmSurg CEO Chris Holden will be CEO.
AmSurg Chief Financial Officer Claire Gulmi will be CFO of the combined company, while Envision CFO Randy Owen will become president of ambulatory services.
Analysts have said the benefits of an AmSurg-Envision merger would be relatively modest. It would create some cross-selling opportunities for Envision to win emergency-room physician staffing contracts in hospitals where AmSurg has a presence and for AmSurg to seek anesthesiology business where Envision is strong.
Last autumn, AmSurg made an unsolicited $5 billion bid to buy rival TeamHealth, an offer that was dropped after TeamHealth rejected it.
AmSurg was largely an owner and operator of ambulatory surgery centers until it bought physician staffing giant Sheridan Healthcare in 2014 for more than $2 billion.
In 2015, AmSurg made about $1 billion of acquisitions, mostly buying practices of anesthesiologists, neonatologists, radiologists and emergency physicians who serve in hospitals.