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Surgery Partners (SGRY) Shares Surge Following Acquisition Proposal

By Fahim Awan
Published On January 28, 2025 5:14 PM UTC
Surgery Partners (SGRY) Shares Surge Following Acquisition Proposal

Shares of Surgery Partners, Inc. (NASDAQ: SGRY) were on a notable increase on the stock market today, rising 17.79% to $25.03 as of the last check. Following reports of a significant takeover offer by Bain Capital Private Equity, this steep rise suggests a possible change in the ownership structure of the business.

Highlights of Bain Capital’s Offer

Currently holding a 39% ownership in Surgery Partners, Bain Capital has offered to buy the remaining shares of the operator of the surgical facility for $25.75 each representing a 21.2% premium over the company’s most recent closing price. Market observers say that the premium could not be attractive enough, allowing for possible rival offers, even though the proposed purchase shows Bain Capital’s belief in Surgery Partners’ worth.

Other interested companies, like as TPG Inc. and UnitedHealth Group, had previously expressed interest in purchasing Surgery Partners, according to reports from Bloomberg. Although these attempts did not result in a sale, the corporation has also investigated strategic alternatives involving other financial and strategic organizations.

Analyst and Market Perspectives

The acquisition proposal has sparked speculation about the possibility of rival offers. Analysts believe the proposed premium might encourage alternative bids from both private equity firms and strategic buyers who have already evaluated the company’s potential. This competitive dynamic could ultimately benefit shareholders by driving up the acquisition price.

Bain Capital, however, has clarified that it remains solely interested in acquiring the shares it does not already own and has no intention of divesting its current holdings. This stance underscores Bain’s strategic commitment to the future of Surgery Partners.

Industry Outlook and Peer Analysis

SGRY stock currently holds an ST score of 37, with analysts maintaining a “Buy” rating. Comparable stocks in the Medical Care Facilities sector, such as DCGO and THC, boast higher ST scores of 71 and 59, respectively. Investors seeking a detailed analysis of peer stocks can access insights through our screener list for a comprehensive market comparison.

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