UnitedHealth Group's Optum unit will acquire DaVita Medical Group for approximately $4.9 billion in cash, adding nearly 300 medical clinics to its network.
Here are six things to know about the deal.
1. Under the agreement, Optum will acquire DaVita Medical Group's clinics in Florida, California, Colorado, Nevada, New Mexico and Washington, as well as 35 urgent care centers and six outpatient surgery centers.
2. DaVita Medical Group, which serves about 1.7 million patients each year, will join Optum's OptumCare division, which works with more than 80 health plans to serve millions of people each year through hundreds of care facilities and 30,000 affiliated physicians.
3. The deal, which is subject to regulatory approval, is expected to close in 2018.
4. Following the transaction, the DaVita Medical Group leadership team will have executive roles at the combined company. DaVita plans to use the proceeds from the transaction for stock repurchases over the few years following the closing of the transaction and to repay debt.
5. "The physicians and clinicians of DaVita Medical Group provide outstanding patient care, and we look forward to supporting their continued success in serving their patients and communities," said Andrew Hayek, CEO of OptumHealth. "We also look forward to working closely with the leadership team of DaVita Medical Group to combine our capabilities and, supported by the data analytics and technology capabilities of Optum, enhancing patient care and the value we provide to the communities we serve."
6. This is the third major transaction Optum has inked this year. In January, it agreed to acquire Deerfield, Ill.-based Surgical Care Affiliates for approximately $2.3 billion in cash and stock. In November, Optum finalized a deal to acquire Advisory Board's healthcare consulting business for $1.3 billion.
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