What happened?
Shares of healthcare company Surgery Partners (NASDAQ:SGRY) jumped 46.4% in the afternoon session after HealthSpan Partners, an affiliate of Bon Secours Mercy Health, agreed to acquire the company in an all-cash transaction valued at approximately $5.7 billion in enterprise value.
Under the definitive merger agreement, public shareholders will receive $23.50 in cash per share, representing a 49% premium over the previous session's $15.75 close, the company said in a press release. A filing confirmed that the deal is backed by committed debt financing without a financing condition and is expected to close in the first quarter of 2027, subject to antitrust clearance and shareholder approvals, alongside a company termination fee of approximately $109 million.
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What is the market telling us
Surgery Partners's shares are quite volatile and have had 18 moves greater than 5% over the last year. But moves this big are rare even for Surgery Partners and indicate this news significantly impacted the market's perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock dropped 23.8% on the news that it reported third-quarter results that missed analyst expectations for profit and lowered its full-year 2025 financial forecast. The company's adjusted earnings per share of $0.13 fell short of consensus estimates. While revenue of $821.5 million was roughly in line with expectations, investors focused on the dimmer outlook for the remainder of the year. Surgery Partners reduced its full-year revenue projection to a range of $3.275 billion to $3.30 billion and its adjusted EBITDA guidance to between $535 million and $540 million.
Surgery Partners is up 51.6% since the beginning of the year, and at $23.14 per share, it has set a new 52-week high. Despite the year-to-date gain, investors who bought $1,000 worth of Surgery Partners's shares 5 years ago would now be looking at only $563.95.
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