(Reuters) - TeamHealth Holdings Inc , which supplies doctors to U.S. hospitals, said it would buy IPC Healthcare Inc in a deal valued at $1.6 billion.
TeamHealth is offering $80.25 for every IPC (IPC.MX)share, a premium of 37.3 percent to IPC's Monday closing price of $56.46.
IPC's shares were trading just below the offer price at $79.20 in premarket trading on Tuesday, while TeamHealth was up 4.9 percent.
IPC specializes in providing doctors for post-acute care services, such as home health and hospice, that support patients' recovery or management following hospitalization.
The deal will allow TeamHealth to broaden the range of services it offers and improve its network of physicians.
The deal comes at a time when the U.S. healthcare system is moving toward a value-based reimbursement system, with an increased focus on post-acute services.
The combined company is expected to have a network of 15,000 healthcare professionals.
The deal, likely to close in the fourth quarter of 2015, is expected to add to TeamHealth's adjusted earnings in 2016.
Citi served as financial adviser to TeamHealth, while Credit Suisse was financial adviser to IPC.
(Reporting by Amrutha Penumudi in Bengaluru; Editing by Don Sebastian and Saumyadeb Chakrabarty)
