The deal should be final in the second or third quarter.
DaVita anticipates being required to divest itself of some diaslysis centers as a condition of the transaction over anti-trust concerns.
DSI Renal is run by local health care entrepreneur Leif Murphy. Last year, Murphy’s company leased 35,000 square feet of space at Fifth Third Center downtown with plans to consolidate its corporate offices there.
DSI currently operates 106 dialysis centers serving approximately 8,000 patients. It has about $360 million a year in sales.
Kent Thiry, chairman and CEO of DaVita said: “This acquisition introduces us to several new geographies and makes us a more effective competitor in selected areas.”
“We believe that combining with DaVita in today’s complex healthcare environment will help us take our operations to the next level and greatly benefit our patients and staff,” said Murphy, DSI’s president and CEO.
The dialysis clinic business has seen a lot of consolidation in recent years.
Last fall, another deal materialized with news of a planned merger between Brentwood-based Renal Advantage and Liberty Dialysis, a competitor based in the Pacific Northwest.
That deal created the third-largest national player among dialysis chains at the time.
Mergers are being driven by a bid to garner economies of scale — basically the ability to buy dialysis-related drugs and equipment at better prices. That has become increasingly important as Medicare alters how it pays for treatment of patients with kidney disease.
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