3 hours ago - Economy

Bon Secours is buying Surgery Partners for $5.7 billion

Illustration of a caduceus with a price tag — Illustration: Natalie Peeples/Axios

Bon Secours Mercy Health on Monday said that it has agreed to acquire Surgery Partners for around $5.7 billion.

Why it matters: The nonprofit health system would greatly expand its outpatient services, thus helping patients avoid hospitals. Much like when Ascension paid $3.9 billion for Amsurg earlier this year.

It also comes 18 months after Surgery Partners rejected a richer take-private bid from Bain Capital, which holds a 38.5% stake that it's expected to maintain.

By the numbers: Bon Secours would pay $23.50 per Surgery Partners share (49.2% premium over Friday's close).

Surgery Partners says that it has more than 5,000 physicians working at over 300 facilities in 30 states.

The bottom line: This could open new exit options for sponsors holding scaled doctor group assets that heretofore have had no real strategic buyers, as other large hospital systems seek to keep pace.

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Bon Secours is buying Surgery Partners for $5.7 billion

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