Community Health Systems Offers $6 Per Share For Tenet Healthcare (CYH, THC)

Community Health Systems CYH has offered $6 per share for Tenet Healthcare THC. The deal values the company at around $3 billion. The price represents a 40% premium to Tenet's closing price on Thursday. The offer is a mix of cash and CYH stock. If the deal is completed, THC shareholders will receive $5 in cash and $1 in stock. Tenet shares have spiked 49% to $6.39 in after hours trading. An excerpt from the press release can be found below. The combination of CHS and Tenet would be both financially and strategically compelling. The combined company would have approximately $22 billion in pro forma annual revenue and own or operate 176 hospitals in 30 states with a total of 32,830 licensed beds. The acquisition of Tenet is expected to be accretive to CHS's earnings per share in the first full year after closing, excluding one-time costs. CHS has a reputation for superior operating performance and a successful track record of integrating acquisitions. CHS believes the complementary fit of the two companies, the geographic proximity of their facilities, and the ability to enhance the operating efficiencies and best practices of a combined organization would enable it to provide even higher quality care for patients and broader and more effective services to the communities it serves.