Princeton Healthcare System (PCHS) will join the University of Pennsylvania Health System (UPHS), marking the latter’s first expansion beyond Pennsylvania’s borders.

The deal, approved by University of Pennsylvania trustees Dec. 12, still requires approval from state and federal regulators. If finalized, UPHS would add the 429-bed PCHS, including its flagship University Medical Center of Princeton in Plainsboro, N.J., which was ranked among the top 20 hospitals in the New York City metropolitan region by U.S. News and World Report.

“Affiliating with the University of Pennsylvania Health System represents the best means of assuring that PHCS and its affiliates can continue to fulfill their mission and charitable objectives in the future,” PHCS President and CEO Barry Rabner said in a statement. “When this partnership is finalized, members of our community will  receive enhanced high-quality care right here, close to home, and they will enjoy the added benefit of easier access to the latest medical breakthroughs, clinical trials, cutting-edge technologies and specialized clinical expertise here and elsewhere in the Penn Medicine system.”

The deal would add additional revenue to UPHS’s already robust financials. The system grew to $5.7 billion in revenue for fiscal year 2016, with an operating margin around 7 percent.

PCHS, with its nearly 3,000 staff members and 1,100 physicians, had about $437 million in revenue in fiscal year 2015, thanks to its high rates of privately insured patients.

“PHCS is an impressive organization which plays a crucial role in ensuring the health of New Jersey residents,” said J. Larry Jameson, MD, PhD, dean of the Perelman School of Medicine and executive vice president of UPHS. “We look forward to many new initiatives as we join together.”

The two systems had signed a letter of intent in July to explore a deal after PCHS spent a year evaluating potential partners. It chose UPHS over 17 other systems.