HealthSpan Partners to acquire Surgery Partners for $5.7 billion

HealthSpan Partners, a contractual affiliate of Bon Secours Mercy Health, has agreed to acquire Surgery Partners, Inc. in an all-cash transaction valued at an enterprise value of approximately $5.7 billion. The deal will see Surgery Partners delist from the Nasdaq Stock Exchange and become a privately held company, while retaining its current name, brand, and headquarters in Brentwood, Tennessee.

Under the definitive agreement, Surgery Partners shareholders, excluding affiliates of Bain Capital Private Equity, will receive $23.50 in cash per share. Bain Capital, which currently holds approximately 39% of Surgery Partners' outstanding shares as the largest shareholder, will roll over its equity interests in exchange for stakes in the acquiring entity. This structure allows Bain Capital to remain a significant partner in the combined organization following the closing. The transaction was negotiated by a group of independent directors on the Surgery Partners board and was subsequently approved by the full board following the committee's unanimous recommendation.

The combination aims to establish one of the largest outpatient surgical care platforms in the United States. Surgery Partners brings an established national network comprising more than 200 locations across 30 states and approximately 5,000 affiliated physicians. Its specialties include orthopedic and spinal care, cardiology, gastroenterology, and ophthalmology. HealthSpan Partners stated that the acquisition expands its presence in the outpatient surgery segment and strengthens its ability to serve patients across broader care settings.

John M. Starcher Jr., President and Chief Executive Officer of Bon Secours Mercy Health, described the relationship as a step toward advancing access to affordable care. He noted that combining Surgery Partners' physician relationships with HealthSpan Partners' stewardship approach supports their mission to serve more communities. Dr. Wael Haidar, President of HealthSpan Partners, added that the deal aligns with patient expectations for convenient, high-quality care outside traditional hospital settings. Eric Evans, Chief Executive Officer of Surgery Partners, characterized the transaction as an attractive path forward for shareholders and a means to continue enhancing patient quality of life through existing partnerships.

HealthSpan Partners intends to finance the acquisition through a combination of cash on hand and new debt, for which commitments have been secured. Jefferies LLC is serving as the exclusive financial advisor to HealthSpan Partners and has provided committed financing as sole initial underwriter. Centerview Partners is the lead financial advisor to Surgery Partners, with Leerink Partners also advising. Moelis & Company LLC advised the Special Committee. The transaction is expected to close in the first quarter of 2027, subject to shareholder approval, regulatory clearances, and other customary conditions. Upon closing, Surgery Partners is expected to remain a secular organization operating in compliance with the Statement of Common Values.