GE Healthcare Financial Services on Wednesday unveiled a definitive agreement to acquire HPSC Inc., a provider of financing to medical and dental practices with more than $1 billion in managed assets.
General Electric Co. (GE) has offered $14.50 per share for all of HPSC's stock, giving the proposed transaction a value of approximately $72.4 million. Until the Nov. 12 announcement, HPSC stock - which trades under the ticker symbol HDR on the American Stock Exchange - had a 52-week range of $6.80 to $10 per share.
The companies expect to complete the acquisition late this year or in early 2004.
Rick Wolfert, president and CEO of GE Healthcare Financial Services, said the addition of HPSC will give the division "a platform to extend our position in the rapidly growing physician/dental practice industry."
He added that the Boston-based HPSC will help GE offer real estate financing, practice acquisition financing, equipment financing, patient financing programs, professional liability insurance, employee benefit programs and other programs to physicians and dentists.
HPSC has approximately 130 employees in 22 offices in 13 states.