Providence Service To Buy Matrix Medical Network For $400 Mln - Quick Facts

(RTTNews) - The Providence Service Corp. (PRSC) announced that it has agreed to acquire CCHN Group Holdings, Inc., or Matrix Medical Network for an aggregate purchase price of $400 million, comprised of $360 million in cash payable at closing and 946,722 shares of Providence common stock with a value of $40 million as of close of trading yesterday.

The acquisition expands clinical capabilities and home based services with the addition of operations which include over 600 nurse practitioners, according to the company.

Of the shares issued, the majority of which will be held by Welsh Carson, 50% will be subject to a one-year lock-up agreement and the remaining 50% will be subject to a two-year lock up agreement, the company stated.

The acquisition is anticipated to close as early as the fourth quarter of 2014, subject to customary regulatory approvals and closing conditions, and is expected to be accretive to earnings per share in 2015.

Randy Dobbs, Matrix CEO, announced that he will transition into an advisory role after the acquisition is complete and that Walt Cooper, currently Matrix's Chief Operating Officer, will assume leadership of Matrix as Chief Executive Officer.