NovaMed (NASDAQ:NOVA) Sold to Surgery Center Holdings

NovaMed (NASDAQ:NOVA) was downgraded by Dougherty & Co. after the company announced they agreed to be acquired by Surgery Center Holdings, a portfolio business of private equity firm, H.I.G. Capital, LLC.

Dougherty commented, "The merger agreement was unanimously approved by NovaMed’s board of directors, including a special committee of independent directors. According to the news release, it appears the board was advised by an experienced investment bank, which suggests there has been at least a reasonable effort to solicit higher offers from other potentially interested parties."

"We assume no higher offers have been received at this time. As a result, we are moving our rating to Sell and our price target from $18 to $13.25. Given that the stock is trading within $0.05 of the buyout price in the premarket and there is always some risk the transaction may be delayed, we suggest investors sell these shares now."

Term of the deal are $13.51 a share and the assumption of $105 million in debt.

NovaMed closed Friday at $13.19, gaining $0.28, or 2.17 percent. Dougherty downgraded them from "Buy" to "Sell."