(RTTNews) – Fresenius Medical Care AG said it entered into a binding agreement to create an independent new kidney-care business by combining its Fresenius Health Partners, with InterWell Health, the physician organization driving innovation in the kidney care space in the U.S., and Cricket Health, a U.S. provider of value-based kidney care with a leading patient engagement and data platform.
The new company, which will be majority-owned by Fresenius Medical Care and operated under the InterWell Health brand, is valued at $2.4 billion.
The merger will create an independent entity that expands into the $120 billion CKD stage 3 to 5 market. The new company targets to engage and manage the care of more than 270,000 people with kidney disease by 2025 and to manage around $11 billion medical cost in the same year.
The company currently anticipates the transaction could close in the second half of 2022. Any book gains arising at closing of the transaction are not expected to be material on Fresenius Medical Care’s earnings and will be treated as a special item. Fresenius Medical Care expects that this part of the execution on its growth strategy 2025 will support the achievement of its financial 2025 targets.
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