MedAssets shares soared early Monday after private equity fund manager Pamplona Capital Management offered about $2.7 billion to buy the health care performance improvement company.
The deal is valued at around $2 billion, not counting about $790 million in debt.
Pamplona will pay $31.35 for each MedAssets share, the companies said, which represents a 32 percent premium to the stock's $23.68 closing price on Friday.
That price also represents a premium of more than 44 percent to the 30-day, volume-weighted average price of MedAssets shares.
MedAssets Inc., based Alpharetta, Georgia, helps hospitals, health systems, acute care providers and others reduce their costs and run more efficiently. It offers cost and clinical resource management and data and analytics tools, among other services.
MedAssets employs 3,350 people and brought in $720 million in revenue last year. The company said earlier this year that it started a review of its business called a "business transformation and value creation plan."
The deal with Pamplona, which manages more than $10 billion in assets across a number of funds, is expected to close in next year's first quarter.
Shares of MedAssets rose 30 percent, or $7.17, to $30.88 at the opening bell Monday. The stock had already climbed 20 percent so far this year, as of Friday's close.
The company also topped analyst expectations for the third quarter.
MedAssets Inc. lost $2.2 million, after reporting a profit in the same period a year earlier. On a per-share basis, its loss was 4 cents. Earnings, adjusted for one-time gains and costs, were 32 cents per share.
That's 4 cents better than expected, according to a poll by Zacks Investment Research.
Revenue was $190 million, better than projections for $187.5 million.