American investment firm KKR today announced it is acquiring US medical services provider Envision Healthcare for $5.57bn (£4.16bn).
The deal represents the latest push into the healthcare sector for KKR, which already owns Envision AMR, the largest US provider of ambulance services.
The firm also bought online medical company WebMD for about $2.8bn last year.
KKR sealed the latest deal with Envision for $46 per share - a premium of 5.4 percent to Envision’s last close on Friday.
Including debt, the deal is valued at $9.9 billion.
Envision’s share price was up 2.57 per cent to $44.76 in early trading today.
The Envision deal comes just a few weeks after KKR announced it would be purchasing business software company BMC Software for $8.5bn.
James D. Shelton, Envision's lead independent director, said: "After conducting a robust review of the business and competitive landscape, the company's opportunities and challenges, and the strategic and financial alternatives available to the company, the board unanimously believes that this transaction will deliver the most value to Envision's shareholders."
Christopher Holden, Envision's president and CEO said: "Envision's leadership team - including both the board and management - have been singularly focused on driving value for our shareholders and have taken decisive action in furtherance of that goal, including the implementation of a comprehensive operational improvement plan and a robust review of strategic alternatives.”
Jim Momtazee, head of KKR's healthcare investment team said: "We are excited to partner with the outstanding team led by Chris Holden to help build upon the strong foundation in place and accelerate Envision's growth going forward."