Cano Health, a primary care provider for seniors and underserved communities, has acquired private medical provider University Health Care and its affiliates in a deal worth $600 million.
University Health and its affiliates have provided comprehensive primary care services to communities in South Florida for the last 25 years.
"This transaction is a significant step forward for Cano Health and our patients, as it will allow us to bring our brand of affordable, high quality primary care to more patients in the Florida market and accelerate Cano Health's profitable growth," said Marlow Hernandez, co-founder, chairman and CEO of Cano Health, said in a statement. "University is a premier provider of value-based care, and we are thrilled to welcome the world-class University team to the Cano Health family. Our model has proven effective at providing industry-leading outcomes while controlling costs, and we look forward to delivering care at a larger scale than ever before."
According to Cano Health, University’s operations align with its own, providing “members access, quality, and wellness through a high-touch and high-tech model of care,” according to the press release. In addition, both companies share similar cultures. University’s 2021 revenue is estimated at $355 million, with EBITDA of $37 million. Combined, Cano Health will have approximately 143,000 members in 88 medical centers, with over 1,000 staff and affiliate providers across the country. The deal adds 24,000 Medicare Advantage members and expands Cano Health’s market share as the No. 1 MA provider in Florida.
With University under its operations, Cano Health updated its 2021 year estimates, increasing its estimate for full year 2021 adjusted EBITDA between $100 million and $110 million, with revenue between $1.4 billion and $1.5 billion. The medical care provider estimates it has 154,000 to 162,000 members for 2021.
"Protecting the legacy of our family-owned business, our relationships with providers, and our deep ties to the local community has always been important to us. Our priority every step of the way was the wellbeing of our patients and the job security of our employees," said Maggie Quevedo, co-founder of University.
The deal is financed through $540 million in cash and $60 million in equity.