Australian health firm Ramsay Health Care is set to buy UK business Spire Healthcare Group for approximately £1bn ($1.4bn, €1.1bn).
The share capital will be acquired by Ramsay Health Care UK through a scheme of arrangement, which requires at least 75% of shareholders to vote and more than 50% of votes to be in favour of the acquisition.
The offer was unanimously approved by Spire, and the transaction will be fully in cash.
Ramsay said the M&A deal will bolster its already existing UK operations in the space.
Craig McNally, chief executive and managing director of Ramsay, said: “The proposed combination builds a broader platform to take advantage of the opportunity for sustained growth in the £5.8bn UK private hospital sector, with the aim of delivering best-in-class healthcare to all patients.
“Ramsay and Spire together would lead the way on patient outcomes through bolstered partnerships with private health insurers, the NHS, consultant partners and associated clinical networks.
“The transaction will also create the platform to address the growing patient demand for more convenient healthcare through increased investment in digital innovation and transformation.”
Justin Ash, chief executive of Spire, added: “Spire has made significant progress towards the strategic goals laid out in 2018, including a material improvement in CQC ratings, strong growth in private payor income, and, more recently, has showcased its strengths and capabilities through its partnership with the NHS during the covid-19 pandemic.
“The highly complementary combination of Spire and Ramsay presents a unique opportunity to accelerate this progress, will increase choice to private and NHS patients across the UK and will offer a platform where our colleagues, consultant partners, businesses, and broader stakeholder group, including the NHS, can continue to deliver a positive difference to patients.”