Monday, January 30, 2017

What happens to the data when companies merge?

Back in the June of 2016, AmSurg (AMSG) announced plans to merge with Envision Healthcare Holdings (EVHC). Then a few months later, right before the merger completed, AmSurg joined S&P 500.  

What happened next was a bit confusing. Since we got a few questions about it, we thought it might help to take a look at the details.

The new, combined company will remain in the S&P 500, but with a new name: Envision Healthcare Corp, and will keep using the EVHC ticker. HOWEVER, from an accounting point of view, AmSurg is actually the acquiring company.

That means that even though the company name is Envision, the historical data we will attach to the new entity will come from AmSurg. That’s the data people should/will be using for historical analysis of S&P 500 companies.

 - As always, thanks to Melissa Herboldsheimer at Accounting Observer for lending her expertise.

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