DaVita to merge with HealthCare Partners

DENVER, May 21 (UPI) -- Kidney dialysis firm DaVita Inc. of Denver said it had agreed to merge with HealthCare Partners in a $4.42 billion stock and cash deal.

In a statement, the companies described HealthCare Partners as "the largest operator of medical groups and physician networks." It had revenues of $2.4 billion in 2011 with total care dollars under management at approximately $3.3 billion.

The firm also posted an operating income margin of 15 percent on total care dollars under management.

When the deal closes, HealthCare Partners will operate as a separate subsidiary of DaVita HealthCare Partners, the companies said.