Amsurg agrees to pay $2.35 billion for Sheridan Healthcare by John Kell @FortuneMagazine May 29, 2014, 10:28 AM EST E-mail Tweet Facebook Google Plus Linkedin Share icons FORTUNE — Amsurg Corp. AMSG agreed to pay about $2.35 billion to acquire private-equity backed Sheridan Healthcare, as the operator of ambulatory surgery centers aims to expand into physician services. The cash-and-stock deal, which is expected to close in the third quarter of this year, is expected to “significantly” boost Amsurg’s revenue and add to adjusted earnings and cash flow. The combined company will have a total addressable market of about $70 billion. Amsurg, which has reported consistently higher sales and net earnings the past few years, reported $1.08 billion in total revenue in 2013. Sheridan Healthcare, which provides anesthesiology, radiology, emergency medicine and other services, is being sold off by private-equity firm Hellman & Friedman LLC. The firm acquired Sheridan for an undisclosed price in 2007. MORE: The U.S. has the world’s most competitive economy. So what? According to Amsurg, Sheridan Healthcare is the U.S.’s leading provider of anesthesiology services. Amsurg said the deal will broaden the company’s relationships with physicians, payers and health systems. The deal is expected to be about 15% accretive to 2015 results on an adjusted basis. The deal will be funded by financing from Citigroup Inc. and the expected issuance of Amsurg equity valued at about $615 million to Sheridan’s holders. Amsurg has an option to change the stock portion of the deal, depending on the company’s share performance ahead of the transaction closing.