Gentiva Announces Acquisition of Odyssey HealthCare For Nearly $1 Billion

Gentiva Health Services (Nasdaq: GTIV) announced that it has agreed to acquire Odyssey HealthCare (Nasdaq: ODSY) for approximately $1 billion that will create the largest US healthcare provider focused on home health and hospice services in the US, with a combined average daily patient census of approximately 14,000 and operations in 30 states.  The combination of Gentiva and Odyssey will create a company with more than $1.8 billion in annual revenue, comprised of approximately 60% in home healthcare revenue and approximately 40% in hospice revenue. Gentiva expects the transaction to be accretive to adjusted earnings per share, exclusive of one-time costs, within the first 12 months following closing.  Gentiva has agreed to pay $27 a share for Odyssey, a 40% premium to Friday’s closing price.

"We are delighted to welcome the Odyssey employees to the Gentiva family," said Gentiva CEO and President Tony Strange. "The combination of the two companies clearly positions us as a leader in both home health and hospice care in the United States. The two companies share similar geography between Gentiva’s home health operations and Odyssey’s hospice operations, with very little overlap between the two companies’ hospice programs. We believe that Odyssey is the nation’s premiere hospice provider and we are excited to partner with an organization that shares our commitment to quality patient care."


"This agreement represents an exciting opportunity to provide Odyssey’s stockholders with significant, immediate and certain value, while also accelerating our strategy," said Robert A. Lefton, President and Chief Executive Officer of Odyssey HealthCare. "With Gentiva, we are bringing together two complementary businesses that are positioned for continued leadership in the hospice industry. We believe Gentiva shares our commitment for compassionate, personalized care, and we look forward to better serving our patients and their families with the enhanced resources and depth of the combined company."

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