Examworks Group Announces It Will Sell Itself To A PE Firm For $35.05 A Share

Examworks Group, Inc. EXAM, a provider of independent medical examinations, peer reviews, bill reviews, Medicare compliance and other related services, announced on Wednesday it has agreed to sell itself to an affiliate of Leonard Green & Partners, L.P., a private equity firm.

As part of the agreement, the affiliate of Leonard Green will acquire all the outstanding shares of the company for $35.05 in cash, representing a total transaction value of $2.2 billion and a 22 percent premium to the 90-day volume weighted average closing price of ExamWorks' stock as of April 26.

Shares of Examworks Group were trading higher by more than 6 percent at $35.67. Its stock closed at $33.57 on Tuesday.

The deal has already been approved by Examworks Group's Board of Directors on the recommendation of a special committee. However, the company will conduct a market test for the next 25 days as part of a "go shop provision" which was included in the merger agreement.

Richard Perlman, ExamWorks' Executive Chairman and James Price, Chief Executive Officer, said: "ExamWorks started a little over eight years ago from a concept and with the hard work and commitment of each and every one of our 3,600 employees, has grown to be the industry leader servicing over 6,000 clients on a global basis generating almost $1 billion of annual revenues. We are immensely proud of this accomplishment, which delivers significant value to our shareholders. We also want to thank our clients for their strong support and assure them of our continued commitment to providing unparalleled services."

John Baumer, Senior Partner of Leonard Green & Partners, L.P., said: "We are excited to partner with ExamWorks' management team and organization. We fully support the Company's commitment to its clients and look forward to the next phase of the Company's growth."