Shares of Select Medical Holdings Corporation (SEM) are up in the pre-market by 8% after the company announced it will be acquired by a consortium led by Robert A. Ortenzio, Martin F. Jackson, and Welsh, Carson, Anderson & Stowe (WCAS).
Under the definitive agreement, the consortium will purchase all outstanding shares of Select Medical not already owned by them for $16.50 per share in cash, valuing the company at about $3.9 billion. The price represents an 18% premium over the company's unaffected share price as of November 24, 2025, and a 25% premium over its 90-day average closing price.
The deal was unanimously approved by Select Medical's independent directors following a review by a special committee. Ortenzio and Jackson, both senior executives at Select Medical, will roll over their equity into the new parent entity rather than receive cash. Other members of management may also participate.
Select Medical will continue to operate as usual during the merger process, with its current management team expected to remain in place. The company also noted that existing debt will remain outstanding, simplifying financing for the transaction.
SEM has traded between $11.65 and $18.61 over the past year. The stock closed Monday's session at $15.00, up 0.62%. The stock is up in pre-market trading Tuesday to $16.31, up 8.70%.
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