Gentiva Health Services to acquire Odyssey HealthCare for about $1 billion

Gentiva Health Services, the second largest provider of home health care in the US,  is acquiring hospice firm Odyssey HealthCare for about $1 billion in cash.

Founded in 1996 and based in Dallas, Texas, Odyssey is one of the leading providers of hospice care in the US in terms of both average daily patient inflow and number of locations.

Gentiva, which is among the leading home healthcare providers in the US, said that the merger will create the biggest hospice care provider in the US, with a combined average daily patient census of approximately 14,000 and operations in 30 states.

The merger will also create the largest US healthcare provider focused on home health and hospice services.

Melville, New York-based Gentiva will pay $27 per share for Odyssey common stock, for an aggregate purchase price of approximately $1.0 billion in cash- a premium of 40 per cent to Friday's closing price.

The combination of Gentiva and Odyssey will create a company with more than $1.8 billion in annual revenue, comprised approximately 60 per cent in home healthcare revenue and approximately 40 per cent in hospice revenue.