Dialysis company DaVita has closed on a deal to purchase medical-group and physician-network company HealthCare Partners for cash and stock worth $4.7 billion, and renamed the company DaVita HealthCare Partners.
The value of the deal—which entails paying $3.7 billion in cash and 9.38 million shares of stock—has risen from the original $4.4 billion value declared in May
because DaVita's stock price has risen nearly 40% since then.
Torrance, Calif.-based HealthCare Partners will be an operating division alongside Denver-based DaVita's renal-care business, both under the DaVita HealthCare Partners name, according to a news release
Dr. Robert Margolis, CEO of HealthCare Partners, was named to DaVita HealthCare Partners' board as co-chairman, sharing that title with Kent Thiry, who also is CEO. HCP's current management will remain to run that division, according to the release.