Astrana Health, Inc. announced on November 8, 2024, that it has entered into a binding agreement to acquire the majority of Prospect Health System's managed care platform for approximately $745 million. The transaction also includes the assumption of certain liabilities. Prospect Health operates an integrated care delivery system with a network of approximately 3,000 primary care providers and 10,000 specialists.
This acquisition is expected to significantly expand Astrana's presence across Southern California, Texas, Arizona, and Rhode Island, serving approximately 610,000 members across various lines of business. Prospect is projected to generate approximately $1.2 billion in revenue and $81 million in adjusted EBITDA for the twelve months ending December 31, 2024.
Astrana plans to fund the acquisition using a combination of cash on hand and a $1,095 million senior secured bridge commitment. The transaction is anticipated to close in mid-2025, pending regulatory approval and other customary closing conditions.
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