Shareholders of Triad Hospitals Inc. have approved the company's acquisition by Community Health Systems Inc.
Under terms of the merger agreement, Triad shareholders will receive $54 per share of Triad common stock.
Franklin, Tenn.-based Community Health said it expects the transaction to close early in the third quarter of 2007, subject to approval by regulatory agencies and completion of closing conditions.
Cash to shareholders will total about $5.1 billion. Community Health also is assuming $1.7 billion in Triad debt, bringing the total value of the transaction to $6.8 billion.
When the deal was announced, Community Health said the merger would bring the number of facilities it operates to 130 in 28 states, with a total bed count of more than 18,700.
The acquisition of Triad's 54 hospitals - including one currently under construction - will make Community Health the largest publicly traded hospital company in the U.S. Nashville, Tenn.-based HCA Inc., which operates 172 facilities, was taken private in a leveraged buyout late last year.
Community Health was the winning bidder for Triad, which initially accepted a buyout offer from two private equity firms for $50.25 per share, or a total of $4.7 billion.
On Wednesday, June 13, Community Health's stock was trading at nearly $38 a share, within a dollar of its high price during the previous 52 weeks. Its stock price has risen by 14 percent from the low levels hit after the Triad acquisition was first announced.