Nov 9 (Reuters) - HealthSpan Partners, an affiliate of nonprofit hospital system Bon Secours Mercy Health, sweetened its bid for Surgery Partners to up to $6 billion on Monday, after the receipt of an unsolicited competing proposal from a third party.
Shares of Surgery Partners climbed 12% in premarket trading.
Private equity group Bain Capital, which has been a minority shareholder since 2017 and owns 39% of Surgery Partners, will back the deal, the companies said.
Surgery Partners shareholders, excluding Bain Capital affiliates, would receive $25 per share in cash, up from the prior offer of $23.50 per share.
If shareholders approve the merger but it closes after March 1, 2027, eligible shareholders would receive additional monthly payments, the companies said.
If the deal closes on the final outside date of October 23, 2027, these payments could add up to $1.61 per share, increasing the total potential consideration to $26.61 per share.
Surgery Partners agreed to revise its deal with HealthSpan after considering an unsolicited, non-binding offer from another buyer on November 3 to purchase all of its shares for $28 per share in cash.
(Reporting by Christy Santhosh in Bengaluru; Editing by Shreya Biswas)