Envision Healthcare, AmSurg to Merge

Envision Healthcare Holdings Inc. and AmSurg Corp. agreed to merge, according to people familiar with the matter, in a deal that will create a health-services provider worth some $10 billion.

The all-stock deal has a fixed exchange ratio of 0.334 AmSurg share per Envision share, according to one of the people. Envision shareholders will own about 53% of the combined company, which is to be named Envision Healthcare Corp., this person said.

The companies are expected to announce the agreement Wednesday, confirming a report in The Wall Street Journal last week.

The combined company will be led by Envision Chief Executive William Sanger, who will become executive chairman, and AmSurg CEO Christopher Holden, who will take that role at the new group. It will have a market capitalization of around $10 billion, and provide a range of health-care services. AmSurg, of Nashville, Tenn., provides outsourced physician services to hospitals and others. It is also a big player in so-called ambulatory surgery, with about 250 facilities performing procedures that don't require an overnight stay.

Envision, based in Greenwood Village, Colo., also provides physician services such as emergency care, anesthesiology and surgery, in addition to ambulance and other medical-transportation services.

The combined company will have dual headquarters in Nashville and Greenwood Village.

Write to Dana Cimilluca at [e-mail] and Dana Mattioli at [e-mail]

(END) Dow Jones Newswires

June 15, 2016 16:45 ET (20:45 GMT)

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