IPC Healthcare's Stock Soars After Buyout Deal With Team Health

IPC Healthcare Inc.'s stock soared 36% in premarket trade Tuesday, after the acute hospitalist announced an agreement to be acquired by Team Health Holding Inc. in a cash deal valued at $1.6 billion. As part of the deal, Team Health will pay $80.25 for each IPC share outstanding, representing a 37% premium to Monday's closing price. The deal is expected to close during the fourth quarter. "We believe this combination, which will be accretive to Team Health's earnings, will result in an enhanced financial profile, allowing for strong cash flows and deleveraging, along with ongoing financial flexibility to fund future growth," said Team Health Chief Executive Mike Snow. Separately, the Team Health reported second-quarter earnings of $51.2 million, or 70 cents a share, up from $44.1 million, or 61 cents a share, beating the FactSet consensus of 69 cents. Revenue rose 30% to $878 million, above the FactSet consensus of $833 million. Team Health's stock surged 4.2% in premarket trade.