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K.K.R. Said to Be Near Deal to Acquire Envision Healthcare

13 June 2018

Private-equity firm KKR & Co. has reached a deal to buy Envision Healthcare Corp., a provider of services to hospitals, for about $5.5 billion in cash.

Nashville, Tennessee-based Envision announced last fall that it would review its strategic options.

KKR arranged financing equal to 7.25 times Envision's earnings before interest, taxes, depreciation and amortization (Ebitda) to finance the deal, a source close to the situation said.

The acquisition agreement comes on the heels of KKR's announcement that it will buy USA business software company BMC Software in a deal that values the company at about $8.5 billion, including debt.

KKR already owns Envision's AMR, which is the biggest US provider of ambulance service.

Reuters reported last month that KKR and USA hospital operator HCA Healthcare Inc (HCA.N) had joined forces to make an offer for Envision, with the move aimed at giving HCA and KKR an edge over buyout firms, which were also pursuing Envision.

The company lost $228 million previous year, though it collected $7.8 billion in revenue. KKR also took WebMD Health private for about $2.8 billion in 2017.

K.K.R. Said to Be Near Deal to Acquire Envision Healthcare