Correct Care Solutions LLC (CCS) announced it has reached a definitive merger agreement to acquire Conmed Healthcare Management Inc. (CONM), for $3.95 per share cash.
The purchase price represents “nearly 33 percent premium over the average closing price per share for the 30 days prior to Conmed's announcement of its intention to explore strategic alternatives and represents an equity value of some $59 million,” according to reports.
Following the transaction closure, Conmed is to become an operating unit of CCS, maintaining its existing executive team as well as headquarters in Hanover, Maryland.
The definitive deal stipulates a cash tender offer of $3.95 per share, expected to begin on or before July 30, 2012. Reports state that the combined company is likely to serve about 100,000 patients daily and operate in 25 states, with over 5,000 employees.
CCS officials noted that this strategic partnership between CCS and Conmed will “substantially increase the geographical footprint and create the necessary diversification that opens the door to new markets in the future.”
The transaction is expected to close in the third quarter of 2012.
CCS provides correctional healthcare services, while CONM is a worldwide medical technology provider that sells products and services to physicians.The company offers arthroscopy, electrosurgery, endoscopy, endosurgery, and gastroenterology technology, integrated systems, patient care, and powered surgical instruments.
With slashed reimbursement rates for Medicare and Medicaid, the growing scarcity of physicians, and the unknown challenges that lie ahead in healthcare reform, many healthcare organizations nationwide are joining forces to stay sustainable.
Edited by
Brooke Neuman
