Kindred Healthcare Inc. is buying home health and hospice care provider Gentiva Health Services Inc. in a cash-and-stock deal valued at about $719.6 million, sealing a deal after previous rejections by Gentiva.
Kindred will pay $14.50 per share in cash and $5 of its common stock.
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The companies put the transaction's value at $1.8 billion, including the assumption of debt.
The combined home health and hospice businesses will operate within the Kindred at Home division and be based in Louisville, Kentucky. It will keep a significant regional presence in Atlanta, where Gentiva is based.
Both companies' boards unanimously approved the deal, which is targeted to close in 2015's first quarter. It still needs approval from Gentiva stockholders.
Kindred's stock rose more than 6 percent in Thursday premarket trading.