Cano Health Buys University Health Care For $600 Mln; Lifts FY21 Adj. EBITDA View

(RTTNews) - Cano Health, Inc. (CANO), a value-based primary care provider for seniors and underserved communities, announced Monday that it has acquired University Health Care and its affiliates for $600 million.

Cano Health acquired University with $540 million in cash and $60 million in equity. The company financed the deal through cash on hand and common equity issued to University's shareholders.

Further, Cano Health said it now estimates full year 2021 adjusted EBITDA between $100 million and $110 million and reaffirmed its full year 2021 membership guidance of 154,000 to 162,000 members and revenue guidance of between $1.4 billion and $1.5 billion.

University Health Care is a private medical provider dedicated to comprehensive, dependable medical services in local communities. Its estimated standalone full-year 2021 revenue is approximately $355 million and adjusted EBITDA is $37 million.

The deal brings the CanoPanorama population health management platform to 13 University facilities and over 300 University employed and affiliate providers serving approximately 24,000 Medicare Advantage members, and increases Cano Health's market penetration in Florida.

Marlow Hernandez, Co-founder, Chairman and CEO of Cano Health, said, "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."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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