Tenet Healthcare engages in acquiring rival Vanguard Health for $4.3 billion
Tenet Healthcare Corp, a hospital operator in a number of states in the U.S., is set to acquire its long time competitor Vanguard Health Systems Inc for a total of $4.3 billion together with the balance due in order to spread out to new features.
On Monday, Tenet CEO Trevor Fetter stated, "This acquisition will take Tenet into new geographic markets, expand the breadth of our service offerings, diversify our earnings sources and increase the benefits we exepect to realize under healthcare reform."
Tenet proposed $21 for each share which denotes a payment of 70% to Vanguard's conclusion last Friday. Reports say that the stakes of Vanguard climbed up to 66% at $20.51 in the exchange before the deadline. The corporations also disclosed that the arrangement which is presumed to be complete not later than the end of the year, takes account of the expected $2.5 billion balance.
Tenet asserted that it confidently believes that the deal will improve their earnings within the first year. It also approximated a yearly savings of $100 million to $200 million.