DaVita and HealthCare Partners Announce Merger Agreement

DaVita (Denver, CO, USA), a leading provider of kidney care services for those diagnosed with chronic kidney disease (CKD), and HealthCare Partners (Torrance, CA, USA), the largest operator of medical groups and physician networks in the United States, have announced a definitive merger agreement.

Upon completion, the combined company will be named DaVita HealthCare Partners. The purchase price to be paid by DaVita is approximately USD 4.42 billion, subject to post-close adjustments and contingent consideration. The purchase price consists of USD3.66 billion in cash and approximately 9.38 million shares of DaVita common stock. DaVita expects to fund the cash portion of the purchase price through a combination of available cash, additional borrowings under DaVita’s existing senior secured credit facilities, and additional debt financing.

“DaVita currently executes on its integrated care mission with thousands of physician partners across the country for specialized kidney care services,” said Kent Thiry, chairman and CEO of DaVita. “HealthCare Partners executes on that same mission across a full and deep array of healthcare services in three geographic markets. This combination will create a unique patient- and physician-focused organization.”

“We look forward to working with DaVita to extend our patient-focused and physician-led integrated care model to serve the needs of patients, physicians, and payers in new markets and in new ways,” said Robert Margolis, MD, chairman and CEO of HealthCare Partners. “DaVita’s vision ‘to build the greatest healthcare community the world has ever seen’ and HealthCare Partners’ aspiration to lead the transformation of American healthcare to higher quality, efficiency, and value are absolutely complementary to each other.”

HealthCare Partners operates in the Southern California, Central Florida, and Southern Nevada areas, and undertakes clinical and economic accountability and management responsibility for nearly all of the healthcare needs of a patient population. This includes the provision of professional services rendered by primary care and specialty physicians, as well as the coordination of hospital and other services. The company operates an extensive network and offers thousands of access points, including 152 medical clinic locations and a network of over 8,300 independent physicians.

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HealthCare Partners