NEW YORK (CNNfn) - Concentra Managed Care Inc. said Wednesday it agreed to be acquired by an investment group active in health-care and information services in a deal valuing the company at $1.1 billion, including assumption of debt.
Concentra, which provides managed care services to businesses and specializes in occupational and group health claims, put itself up for sale in October. The buyer is an affiliate of Welsh, Carson, Anderson & Stowe, an investment firm that already owns 14.9 percent of Concentra. The deal is worth about $1 billion, including debt, for the 85.1 percent that Welsh, Carson does not already own.
Boston-based Concentra also has the nation's biggest chain of occupational health care centers.
Welsh Carson, formed in 1979, has invested heavily in health-care, information and cellular services in recent years. The New York-based firm owns Bridge Information Systems, the No. 2 provider of up-to-the-minute stock quotes and other data to the financial services industry.
Under the deal, an affiliate of Welsh Carson will pay $16.50 a share cash for all but 4 percent of Concentra's outstanding stock. If Welsh Carson finds an investor to buy the rest of the stock, which would equal about 7 percent of the outstanding shares after the merger, stockholders will get $16.50 for all their stock.
The deal includes assumption of $328 million of debt, which will be refinanced, Concentra said. Welsh Carson partnerships will invest about $350 million in equity and up to $110 million in debt, the company said. Concentra will continue to operate as an independent company under its current name.
Welsh Carson has moved aggressively into the financial information business, spending more than $1 billion to buy Bridge News and add rival Dow Jones & Co.'s (DJ) Telerate information service, which it folded into Bridge last year.
The firm also recently agreed to invest almost $500 million along with partners in SpectraSite Communications after the owner of towers for cellular phone and other service inked a deal to buy 2,000 towers from wireless telecom firm Nextel Communications (NXTL).
Concentra Managed Care shares rose 11/16 to 11-5/8 in Nasdaq trading Tuesday.