Bon Secours affiliate lifts Surgery Partners bid to up to $6B

HealthSpan Partners, an affiliate of nonprofit hospital system Bon Secours Mercy Health, sweetened its cash bid for Surgery Partners on Monday, lifting the deal's value to as much as $6 billion. Holders other than Bain Capital affiliates would collect $25 a share, up from $23.50 in the earlier offer. Surgery Partners stock jumped 12% in premarket trading on the news.

The raise followed a surprise rival approach. Surgery Partners said it received an unsolicited, non-binding offer on Nov 3 from a third party looking to buy all of its shares for $28 a share in cash, and it weighed that bid before agreeing to revise terms with HealthSpan.

Bain Capital, which has held a minority stake in Surgery Partners since 2017 and owns 39% of the company, will back the revised merger, the companies said.

There's also a bonus for a slow close. If shareholders approve the deal but it finishes after March 1, 2027, eligible holders get extra monthly payments. If it runs all the way to the final outside date of Oct 23, 2027, those payments could total $1.61 a share and push the potential consideration to $26.61 a share.