HealthSpan Partners to Acquire Surgery Partners at Nearly $5.7 Billion Enterprise Value
Key Facts
HealthSpan Partners, an affiliate and supporter of Bon Secours Mercy Health, announced a definitive agreement to acquire Surgery Partners for cash at an enterprise value of nearly $5.7 billion, taking the surgical-center operator private. Surgery Partners shareholders, excluding Bain Capital affiliates, will receive $23.50 in cash for each share upon completion of the deal. That price represents a 49.2% premium to the stock’s close on the Friday before the announcement, according to Axios. The stock, listed under the ticker SGRY, closed at $15.75 on October 23, according to EL7 data. The deal is expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals and the satisfaction of customary closing conditions.
The enterprise value of about $5.7 billion differs from the specified cash consideration per share: the former is the total value of the transaction as announced by the company, while the latter is what eligible shareholders will receive upon completion. The company said Bain Capital’s shares will not be paid out in cash under the arrangement, as its affiliates will convert their shares into ownership interests in the acquiring entity. Bain owns about 39% of the outstanding shares, and the company describes it as Surgery Partners’ largest shareholder. Bain will therefore remain an important partner after the deal closes, while the other covered shareholders will receive cash consideration. At closing, the common stock will no longer be publicly traded on Nasdaq, and Surgery Partners will become a private company.
Surgery Partners’ board approved the agreement following a unanimous recommendation from a special committee that led the negotiations; the company said the committee is composed entirely of independent, disinterested members. HealthSpan Partners intends to finance the acquisition with a mix of available cash and new debt, adding that financing commitments have been secured. The transaction remains subject to approval by Surgery Partners shareholders, regulatory approvals and the satisfaction of customary closing conditions. The company said completion is expected in the first quarter of 2027. Afterward, under the terms of the announcement, the company will become privately owned and its stock will be delisted from Nasdaq.
Surgery Partners has more than 200 locations in 30 states and about 5,000 affiliated physicians, adding to and expanding HealthSpan Partners’ network of surgical care services. The company reported in its annual report that patient services at its surgery centers and surgical hospitals generated nearly $3.2 billion in revenue in 2025. Total revenue rose from $2,743.3 million in 2023 to $3,114.3 million in 2024, then to $3,308.7 million in 2025. In the same year, revenue at existing facilities, adjusted for days, increased 4.9% compared with 2024. This came as revenue per case rose 1.4% and case volume at the same facilities increased 3.4%.
Despite revenue growth, Surgery Partners recorded a net loss attributable to the company of $77.9 million in 2025, compared with a loss of $168.1 million in 2024. The company’s chairman said in the annual report that Surgery Partners entered 2026 with a renewed focus on financial recovery, strengthening financial discipline, and improving portfolio and capital management. The deal follows the company’s rejection, 18 months earlier, of a higher offer from Bain Capital to acquire it, according to Axios. The report said Bain then owned a 38.5% stake, while the company estimates its current holding at about 39%. Axios says HealthSpan’s acquisition expands Bon Secours Mercy Health’s outpatient care services, which could help patients avoid hospitals. In a comparison with a deal in the sector, the agency reported that Ascension bought Amsurg for $3.9 billion earlier in 2026.