KKR to take physician services provider Envision Healthcare private in $5.57 billion deal

For many patients it's not their age but the presence of arthritis that makes the surgery ineffective.
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For many patients it's not their age but the presence of arthritis that makes the surgery ineffective.

KKR said on Monday it will take U.S. physician services provider Envision Healthcare private in a deal valued at $5.57 billion, its second major acquisition in less than two weeks.

KKR's offer of $46 per share represents a premium of 5.4 percent to Envision's last close on Friday.

Including debt, the deal is valued at $9.9 billion.

KKR said on May 29 it would buy business software company BMC Software in a deal that sources said was valued at $8.5 billion, including debt.

Other private equity firms competing for Envision included a consortium of Carlyle Group and TPG Global, sources told Reuters in May.

Reuters reported the deal on Sunday, citing a source. The deal is expected to close in the fourth quarter.

Envision was advised by J.P. Morgan, Evercore and Guggenheim Securities.

Debt financing for the transaction will be provided by Citigroup, Credit Suisse, Morgan Stanley, Barclays, Goldman Sachs, Jefferies, UBS, RBC, HSBC, Mizuho, and KKR Capital Markets.