Recent Updates — SGRY

Spyglass Topco, LLC, an affiliate of HealthSpan Partners and Bon Secours Mercy Health, entered into a definitive Agreement and Plan of Merger to acquire Surgery Partners, Inc. in an all-cash transaction valued at approximately $5.7 billion enterprise value. Under the terms, non-affiliated shareholders will receive $23.50 per share in cash, while Bain Capital affiliates will roll over their equity interests in exchange for ownership stakes in the surviving entity. The merger requires approval from Surgery Partners' disinterested stockholders and regulatory clearance under the Hart-Scott-Rodino Act, with closing expected in the first quarter of 2027. Upon completion, Surgery Partners will become a privately held subsidiary and its common stock will be delisted from Nasdaq. Surgery Partners operates a national network of ambulatory surgery centers and surgical hospitals providing outpatient surgical care.

Surgery Partners, Inc. completed the disposition of its Mountain View Hospital and Idaho Falls Community Hospital operations to Intermountain Health on September 14, 2026. The company received aggregate consideration of approximately $796.6 million, with net cash proceeds of roughly $587 million after adjustments for closing cash, indebtedness, and transaction expenses. Proceeds are intended primarily for debt repayment. This strategic divestiture transforms Surgery Partners into a pure-play short-stay surgical provider, significantly reducing Medicaid payor mix to under 2% and eliminating non-surgical service lines such as neonatology and inpatient pediatrics. The company updated its full-year 2026 guidance, projecting revenue between $3.08 billion and $3.18 billion and Adjusted EBITDA of at least $489 million on a reported basis. Surgery Partners operates a network of ambulatory surgery centers, surgical hospitals, physician practices, and urgent care facilities across the United States.

Surgery Partners, Inc. reported second quarter 2026 results on August 10, 2026, with revenue increasing 2.7% year-over-year to $848.9 million and same-facility revenues rising 5.0%. The company posted a net loss attributable to Surgery Partners of $15.0 million, compared to a $2.5 million loss in the prior year period, while Adjusted EBITDA decreased slightly to $125.2 million from $129.0 million. Management reaffirmed full-year 2026 revenue guidance of $3.35 billion to $3.45 billion and Adjusted EBITDA of at least $530 million, excluding the impact of a pending divestiture in Idaho Falls. The company reported cash and cash equivalents of $216.7 million and a net debt-to-EBITDA ratio of approximately 4.4x as of June 30, 2026. Surgery Partners operates as a leading owner and operator of short-stay surgical facilities and healthcare services in the United States.