DaVita Inc., announced that it has entered into a definitive agreement to acquire DSI Renal, Inc. ("DSI"), for approximately $690 million, subject to adjustments. The company expects to close the transaction in the second or third quarter of this year.
Completion of the transaction is subject to customary closing conditions including Hart-Scott-Rodino antitrust clearance. DaVita anticipates that the company will have to divest some centers as a condition of the transaction.
DSI currently operates 106 dialysis centers serving approximately 8,000 patients. DSI's current annualized revenue is approximately $360 million.
Kent Thiry, Chairman and CEO of DaVita stated, "We look forward to joining the dedicated teammates and physicians associated with DSI in continuing to provide quality care to ESRD patients. This acquisition introduces us to several new geographies and makes us a more effective competitor in selected areas. Through this acquisition we will be able to bring the broader line of DaVita chronic kidney disease services to DSI patients. These services will be beneficial for patients, physicians, payors, and taxpayers in providing more effective care and helping to reduce costs to the health care system."
Leif Murphy, President and CEO of DSI commented, "DaVita has always shared DSI's commitment to improving the quality of life of our patients and to providing high quality care. We believe that combining with DaVita in today's complex healthcare environment will help us take our operations to the next level and greatly benefit our patients and staff."
Credit Suisse served as a financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP served as a legal advisor to DaVita on the transaction.