DaVita purchasing HealthCare Partners
Kidney dialysis services provider DaVita Inc. said Monday that it has agreed to buy the doctor network operator HealthCare Partners in a cash-stock deal worth about $4.42 billion.
DaVita said it will pay about $3.66 billion in cash and contributed common stock valued at $758 million as of last Friday to the deal. It also could pay an additional $275 million in cash if HealthCare Partners achieves performance targets this year and next.
HealthCare Partners, based in Torrance, Calif., manages and runs medical groups and doctor networks, with operations in California, Nevada and Florida. It coordinates care for more than 667,000 patients and provides primary and specialty doctor care. HealthCare Partners had $2.4 billion in revenue last year.
DaVita is based in Denver, and its business headquarters employ about 1,000 people in downtown Tacoma.
It operates or provides administrative services at 1,841 dialysis facilities in the United States, and also runs 15 outpatient dialysis centers in three other countries. It will use available cash, its senior secured credit facilities and more debt financing for the deal’s cash portion.
The deal is still subject to approval by HealthCare Partners owners and other closing conditions. The companies expect to close the deal in the fourth quarter. After the closing, the combined company will be named DaVita HealthCare Partners Inc., DaVita said.
The Associated Press
