Private equity fund manager Pamplona Capital Management plans to buy MedAssets in a cash deal valued at about $2.7 billion.

Private equity fund manager Pamplona Capital Management plans to buy MedAssets in a cash deal valued at about $2.7 billion.

The companies say Pamplona will pay $31.35 for each MedAssets share, an offer that represents a 32 percent premium to the $23.68 closing price on Friday of MedAssets shares.

MedAssets shares soared almost 31 percent in premarket trading Monday.

Alpharetta, Georgia-based MedAssets Inc. helps hospitals, health systems, acute care providers and others reduce their costs and make their operations more effective. The company said earlier this year that it started a review of its business called a "business transformation and value creation plan."

The deal is expected to close in next year's first quarter.

Pamplona Capital Management manages more than $10 billion in assets across a number of funds.