Metropolitan Health Networks Inc. today announced it will Continucare Corp. in a cash and stock transaction valued at approximately $416 million, creating a healthcare service provider to more than 68,000 Medicare Advantage and Medicaid customers.
The combined company will own 31 primary care medical practices in 18 Florida counties, utilizing a network of more than 250 contracted, independent, primary care practices.
Combined, the companies said they estimate approximately $660 million in annual revenue, based upon their respective results for the 12 months ended March 31, 2011, and more than $90 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for the same period.
“In keeping with our mandate to achieve both organic and acquired growth, it gives us great pleasure to make today’s announcement,” Michael Earley, chairman and CEO of Metropolitan stated in the press release. “ … Each of our organizations have independently cultivated businesses that have little overlap and provide exemplary primary care to seniors and others in one of Florida’s fastest growing industries. Continucare is viewed as an accretive and a highly complementary acquisition for Metropolitan, one that we would be proud to culminate.”
Earley also noted that the companies expect the Medicare and Medicaid markets to grow significantly, and that the acquisition increases the companies’ potential for out of state expansion.
“… As our industry has evolved, we have sharpened our focus on providing the best possible care to our patients while continuing to create value to our shareholders,” commented Richard Pfenniger, chairman, CEO, and president of Continucare stated. “We expect that this transaction will bring resources to our customers and value to our shareholders, while providing stability to the employees of both of our companies, as they continue on a combined growth plan.”
Continucare common stock shareholders will receive $6.25 per share in cash, and 0.0414 of a share of Metropolitan common stock, equaling approximately $0.20 at the time of the announcement. The exact value of the will depend on Metropolitan’s share price at closing. Metropolitan expects to issue approximately 2.7 million shares in connection with the pending transaction.
For more information visit www.metcare.com or www.continucare.com
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