TeamHealth Holdings (tmh) said on Monday it agreed to be bought by private equity firm Blackstone Group in a deal valued at about $6.1 billion.
TeamHealth, a U.S. hospital staffing provider, has been the target of activist funds including Jana Partners LLC.
Blackstone will pay TeamHealth shareholders $43.50 per share held, a premium of about 18% to the stock's Friday close.
TeamHealth's shares rose to $42.45 in premarket trading on Monday.
The deal, expected to close in the first quarter of 2017, would allow TeamHealth to cope with pricing pressure as a private company, amid a wave of consolidation.
The U.S. physician services industry has been rapidly consolidating to counter rising administrative costs due to President Barack Obama's Affordable Care Act and the desire to offer a broader array of services to hospitals.
Following its rejection of Amsurg's offer, TeamHealth in November acquired smaller peer IPC Healthcare Inc for $1.6 billion.
Knoxville, Tennessee-based TeamHealth, which offers outsourcing services, including emergency medicine, anesthesiology and ambulatory care, to hospitals and physician groups, had outstanding debt of $2.47 billion as of June 30.
Reuters earlier this month reported Blackstone was the lead bidder for TeamHealth , citing sources.
Team Health agreed in March to add three directors to its board following a deal with Jana, which had criticized its "missteps in critical areas including capital allocation, strategy and governance."
BofA Merrill Lynch is Blackstone's financial adviser, while Kirkland & Ellis LLP and Ropes & Gray LLP are its legal counsel.