Universal Health To Acquire Psychiatric Solutions (UHS, PSYS)

Universal Health Services Inc. UHS has agreed to buy Psychiatric Solutions Inc. PSYS for $2 billion in cash. The company will also assume Psychiatric’s (PSYS) debt of $1.1 billion. UHS (UHS) will pay $33.75 per share, which is a 3.4% premium to Psychiatric’s Friday closing price. The deal will make Universal Health Services the largest provider of behavioral healthcare services in the United States. Private equity firm Bain Capital was also in contention for Psychiatric Solutions. Universal Health’s chief financial officer Steve Filton said, “This transaction is transformative for UHS, repositioning us as the largest provider of behavioral healthcare services." He also said that the deal will be accretive and would add significantly to its earnings per share.