If the deal is approved by regulators and goes through, the merged operations would amount to some 12,000 physicians, dentists and other health care workers.
As separate entities, Terveystalo and Attendo generated combined revenues of some 924 million euros in 2017, according to a Terveystalo press release issued on Thursday.
Attendo's Finnish operations include some 2,600 full-time employees including primary and specialist care providers, dental professionals and other staff. The company generates some 235 million euros in annual revenue.
"Approximately half of [Attendo's] revenue came from public pay and dental care outsourcings (seven full outsourcings under the "Kuntaturva" brand and 13 outsourced health centers) where Attendo's Finnish healthcare operation is the market leader with high quality and cost-efficient operations," Terveystalo said in the release.
Attendo's staffing operations revenue was 78 million euros in 2017.
"The remaining share of revenue is divided into private dental care and occupational healthcare. Approximately 85 percent of the services provided were publicly funded in 2017, Terveystalo said.
Finland's Competition and Consumer Authority is expected to make a decision on whether the acquisition can proceed by the end of the year.
Announcement precedes health care reforms vote in June
The acquisition plans comes ahead of planned reforms to Finland's health care system (colloquially referred to as 'sote') which Parliament is expected to vote on in June. The aim of the controversial, much-criticised reform is to increase competition in the health care sector by increasing the role of private health care providers.
Terveystalo CEO Yrjö Närhinen said the deal is a "major milestone" in building health services in Finland.
"Regardless of the sote reform, skilled healthcare professionals will continue to be a critical success factor for our growth. The transaction strengthens our strategy as a focused healthcare service provider and brings together two unique healthcare service platforms that complement each other well in terms of people, culture, competences, service offering and geographical footprint," Närhinen said in the release.
"With this transaction, Terveystalo would also gain a lot of business and services that we do not currently have in our portfolio and which we would like to develop and grow. With this transaction we expect to create substantial value for our shareholders while the Finnish people benefit from a stronger, nationwide operator capable of delivering cost-effective and versatile physical and digital services to the needs of different customer groups and for the citizens in different stages of life," Närhinen said.