Why IPC Healthcare’s Stock Soared Today

Physician staffing company TeamHealth will acquire IPC Healthcare, an acute hospitalist and post-acute care provider, for $1.6 billion in cash, the companies announced Tuesday. Per the terms of the deal, TeamHealth will pay $80.25 per share for IPC Healthcare in an all-cash deal, representing a 37% premium compared to where the company’s share closed Monday.

IPC, based in North Hollywood, Calif., is a national acute-care hospital and post-acute-care provider organization.

The transaction, which is expected to close during the fourth quarter of 2015, is subject to regulatory approvals.

The boards of directors of both companies have approved the transaction. Through its 21 regional locations and multiple service lines, TeamHealth’s more than 14,000 affiliated healthcare professionals provide emergency medicine, hospital medicine, anesthesia, urgent care, and pediatric staffing and management services to approximately 1,000 civilian and military hospitals, clinics, and physician groups in 47 states.

TeamHealth President and Chief Executive Officer, Mike Snow said, “TeamHealth will be better positioned to capitalize on key trends as the U.S. healthcare industry moves toward value based reimbursement with an increased focus on post-acute care and services”.

Shares of IPC rose to $79.25 in early trading, while TeamHealth climbed 4.2 percent to $70.40.