Mountain Acquisition and Mountain Merger Sub, affiliates of Vestar Capital Partners V formed for the purpose of acquiring HealthGrades, have commenced a tender offer to acquire all of the outstanding shares of HealthGrades’ common stock for USD8.20 per share in cash.

The aggregate purchase price for the equity of HealthGrades is approximately USD294m, which consists of approximately 35.9 million shares.

HealthGrades is an independent healthcare ratings organisation, providing ratings, profiles and cost information on US hospitals, physicians, nursing homes and prescription drugs.

In connection with the tender offer, Mountain Acquisition has been granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

Upon the successful closing of the tender offer, stockholders of HealthGrades will receive USD8.20 in cash for each share tendered in the offer, without interest and less any applicable withholding taxes.

Following completion of the tender offer, under the terms of the merger agreement, Mountain Merger Sub will complete a second-step merger in which any remaining shares will be converted into the right to receive the same per share price paid in the tender offer.

HealthGrades is filing with the SEC a recommendation that stockholders accept the tender offer and tender their shares to Mountain Merger Sub. The board of directors of HealthGrades has unanimously approved the transaction.