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, Murphys 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 todays complex healthcare environment will help us take our operations to the next level and greatly benefit our patients and staff, said Murphy, DSIs 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.Comments | Share your thoughts »Related StoriesMore Business headlinesLayoffs rarer even as jobless still struggleAOL buying Huffington Post for $315MObama, businesses try to ease tensionMissing out on a tax refund? Many low-income Tennesseans areSelected for you by a sponsor:ADVERTISEMENT
Top StoriesMike Munchak officially named as Tennessee Titans' head coach- Snow in Nashville today expected to affect rush hour - Tennesseans skeptical of President Obama, Sarah Palin- Belle Meade Jewelry robbed of more than $100,000 in merchandise- See all Top Stories
Most PopularMike Munchak officially named as Tennessee Titans' head coachTitans expected to pick Mike Munchak as head coachTennesseans skeptical of President Obama, Sarah PalinMonday's weather forecastTwo winter storms forecast for the week
Where to dine for Valentine's
Most CommentedTennesseans skeptical of President Obama, Sarah Palin100Teaching immigrants is growing challenge for Nashville schools85Bush visit to Fort Campbell is an insult to those who died121ADVERTISEMENT
Insurer Humana buying Concentra for $790 million