Tenet to acquire Vanguard Health Systems

In the latest major acquisition, Tenet Healthcare announced that it will acquire Vanguard Health Systems for $21 per share in an all cash transaction.

The acquisition, valued at $4.3 billion, includes the assumption of $2.5 billion in Vanguard debt, according to a June 24 Tenet press release. Thus the total value of the trade is $1.8 billion.

In all, the expansion extends Tenet’s total ownership to 79 hospitals and 157 outpatient facilities in 16 states, including two new markets in Texas. The acquisition creates $100 to $200 million in expected annual synergies, according to the release.

“This unique strategic transaction will bring together organizations that share a common commitment to providing high quality care and create significant new growth prospects for Tenet,” said Trevor Fetter, president and CEO of Tenet, in a statement.

Expected to close before the end of 2013, the acquisition is subject to customary closing conditions and regulatory approvals, according to the release.