US-based Tenet Healthcare Corporation and its subsidiary United Surgical Partners International (USPI) have signed an agreement to acquire SurgCenter Development (SCD) from its principals for a consideration of $1.2bn.

As per the terms of the latest agreement, Tenet/USPI will acquire ownership stakes in 92 ambulatory surgery centres (ASCs) as well as associated ambulatory support services.

The centres that are part of the deal are located across 21 states in the US and would further expand USPI’s presence in the country.

The portfolio includes 65 mature ASCs and 27 centres that have been either opened within the last year or planned to begin operations in 2022.

Additionally, USPI has entered into a five-year partnership and development agreement with SCD’s principals to ensure continuous support for SCD’s facilities and physician partners.

Tenet Healthcare CEO Saum Sutaria said: “We are extremely pleased to announce this transformative transaction and partnership, which builds upon USPI’s position as a premier growth partner and SCD’s track record of developing high-quality centres with leading physicians.

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“By welcoming these centres into our company, USPI will maintain its reach as the largest ambulatory platform for musculoskeletal services, a high-growth service line.”

Tenet intends to fund the deal by issuing first-lien secured notes.

The deal is expected to complete in the fourth quarter of this year, subject to customary approvals and closing conditions.

Notably, USPI has acquired 67 SCD centres since 2009. Upon completion of the deal, USPI will have more than 440 facilities in 35 states.

In near future, USPI intends to acquire some equity interest in the ASCs from physician owners for incremental consideration of up to $250m.