Business Merger: DaVita And HealthCare Partners

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Mergers & Acquisitions on Monday, May 28, 2012.

DaVita -- the well-known kidney dialysis center -- has recently announced that they will spend over $4.4 million to purchase HealthCare Partners. HealthCare Partners is a company that operates physician networks and medical groups and has three offices in the U.S., including one in California.

DaVita says that they have been planning for a potential business merger and acquisition in recent months. DaVita has reported they have a definitive business merger agreement in place for cash totaling $3.66 billion and just over nine million shares that are each valued at nearly $760 million.

The business merger is currently expected to be finalized late this year in the fourth quarter. Once the merger has been completed, the new name of the company will be DaVita HealthCare Partners. With 152 clinics, over 8,300 independent doctors and 700 staff physicians, HealthCare Partners posted $2.4 billion in revenue for 2010 with operating income of nearly $490 million while DaVita posted almost $7 billion in revenue and $1.1 billion operating income.

When a business merger takes place, it is inevitable that a business structure change will come about. At this time, it is uncertain just what type of change we will see from the latest purchase of DaVita. However, this is common with any business merger at first. The most important aspect of a business merger and acquisition is to ensure that all the necessary paperwork is drawn up, fully understood and agreed upon by both parties before moving forward with the acquisition and merger. The importance of a solid business merger cannot be overstated for the success of a California business.

Source: Denver Business Journal, "DaVita agrees to pay $4.42 billion for latest purchase," L. Wayne Hicks, May 21, 2012


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