Sources: KKR Nearing Agreement to Buy Envision

KKR & Co. the private equity company is close to reaching an agreement to buy Envision Healthcare Corp., the U.S.-based provider of physician services for a per share price of $46, equal to $5.5 billion, said sources close to the situation. The deal could be announced on Monday said the sources.

A spokesperson for KKR did not comment when asked about the possible acquisition.

The deal would come fewer than two weeks after KKR announced that it would acquire BMC Software the U.S. based business software company for what sources said would be as much as $8.5 billion, which would include debt, making it the largest acquisition by the buyout firm since the financial crisis of 2008.

Last month it was reported that KKR and HCA Healthcare Inc. the hospital operator in the U.S. had joined together to offer to acquire Envision, with that move thought to give KKR and HCA an edge over other buyout companies, which were pursuing Envision as well.

Other companies that were competing to acquire Envision included a TPG Global and Carlyle Group consortium amongst others.

Envision said last year that it had been reviewing several strategic alternatives after it reported third quarter earnings that disappointed investors and were attributed in part to the impacts of two hurricanes that hit the southern part of the U.S. as well as the slowdown in growth of patient demand.

KKR agreed in May to acquire BMC from Golden Gate Capital and Bain Capital two private equity firms, which acquired BMC in 2013 for a price of $6.9 billion.

KKR’s 2017 year for fundraising was very successful, with the fund closings for the private equity firm including a North America $13.9 billion private equity fund as well as a healthcare fund of $1.45 billion.

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