Shares of the specialty healthcare services company increased 20.72 percent to $13.69 late morning.
The $14.05 per share price represents a 24 per cent premium to IntegraMed’s closing stock price of $11.34 on Friday, the last trading day prior to today’s announcement.
“This transaction delivers on two of our key objectives, as we have secured a premium to IntegraMed’s share price and a long-term partnership with a respected investor,” said IntegraMed’s chairman, president and CEO, Jay Higham.
“With Sagard, we will have the additional financial flexibility to continue investing in the growth of our business. Sagard is a long-term investor, and this transaction demonstrates their confidence in the company’s fundamental business operations and growth prospects.”
IntegraMed offers products and services to patients and providers in the fertility and vein care segments of the health industry.
Its Specialty Attain Fertility Centers is the nation’s largest fertility center network, with 15 company-managed partner centers and 23 affiliate centers. The network has over 130 locations across 34 states and the District of Columbia.
“We are excited about this transaction and partnership,” added Sagard’s managing partner, Dan Friedberg.
“IntegraMed has built a powerful business model anchored by a strong and experienced team of medical, clinical and administrative personnel and by its management and support services.
“They have consistently provided the highest levels of patient care and treatment innovation, while also delivering strong financial performance at above-industry growth rates.”
The transaction is expected to close before November of this year, subject to shareholder approval and customary conditions.
IntegraMed’s largest shareholder, which owns 26.9 percent of the company’s outstanding shares, has already agreed to vote in favor of the transaction.
Sagard Capital, an investor in public and private small and mid-sized companies,owns a 3.7 percent stake in IntegraMed.
IntegraMed supports its provider networks with clinical and business information systems, marketing and sales, facilities and operations management, finance and accounting, human resources, legal, risk management, quality assurance, and fertility treatment financing programs.