Private-equity firm Apollo Global Management has signed an agreement to acquire LifePoint Health in a deal valued at approximately $5.6bn, which includes $2.9bn of net debt and minority interest.

As part of the deal, LifePoint Health will be merged with RCCH HealthCare Partners (RCCH), which is owned by certain funds managed by affiliates of Apollo Global Management.

Upon completion of the transaction, shareholders of LifePoint will receive $65.00 per share in cash for each share of common stock they own.

This purchase price is a premium of around 36% to LifePoint’s closing share price on 20 July.

Once the transaction is completed, the merged entity will be privately held and operate under the LifePoint Health name.

The merged entity will be led by LifePoint chairman and chief executive officer William F. Carpenter III.

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The company’s headquarters will continue to be in Brentwood, Tennessee, where both the companies’ headquarters are currently located.

The combination of these two companies will create a healthcare provider with pro forma 2017 revenues of over $8bn besides 7,000 affiliated physicians, around 60,000 employees and over 12,000 licensed beds.

Following the closure of the transaction, LifePoint will operate a diversified portfolio of healthcare assets.

These include 84 non-urban hospitals in 30 states, regional health systems, physician practices, outpatient centres and post-acute service providers.

Carpenter III said: “LifePoint and RCCH are aligned in our missions and commitment to ensuring that non-urban communities across the country have access to quality care, close to home.

“Together, we can extend this shared focus while generating new opportunities for growth and partnerships that will help us navigate the changing healthcare industry dynamics.

“I am eager to work with the outstanding teams at LifePoint and RCCH as we continue advancing high quality patient care and Making Communities Healthier.”

The deal, which is expected to be completed over coming several months, is subject to customary closing conditions such as approval of LifePoint’s shareholders and regulatory approvals.