Shawshank, VA 7/16/12 (StreetBeat) – Conmed Healthcare Management (AMEX: CONM) and Correct Care Solutions, LLC, announced today that they have entered into a definitive merger agreement. CSS will acquire Conmend for $3.95 a share in cash, representing a 33% premium over Conmed’s average closing price for the past 30 days and sums up to an equity value of $59 million. Under the terms, Conmed will become an operating subsidiary of CSS and keep its executive board and headquarters in Hanover Maryland.
The cash tender offer of $3.95 per share will commence on or before July 30, 2012. This strategic combination will increase their geographical footprints and provide the diversification needed to get into new markets in the future. Together, the combined company expects to service nearly 100,000 patients daily and operate in 25 states with other 5,000 employees. They will have practices in clinical care, mental health, telepsychiatry, electronic medical records, utilization management, and pharmacy services.
“Conmed has been actively seeking a partner that not only maintains the integrity of what has been built over the last 28 years, but also represents an attractive opportunity to deliver a return on investment to its shareholders. By joining with CCS, we believe we will achieve that goal,” commented Dr. Richard Turner, Chairman and Chief Executive Officer of Conmed. “My executive team and I look forward to working with Jerry and his team and sharing our best practices.”
“This is a significant milestone for CCS and Conmed. Not only do we bring together two complementary businesses to better serve existing and new clients, we unite two very similar philosophies on providing care to patients and providing excellent customer service,” said Jerry Boyle, President & Chief Executive Officer of CCS.
Conmed Healthcare is currently trading at $3.90, up $0.45 or 13.04%, following this news.
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