BioScrip Buys DaVita Subsidiary for $70 Million
On Thursday, BioScrip announced that it will buy offsite pharmacy company HomeChoice Partners from its parent company, DaVita HealthCare Partners , for $70 million cash. The terms of the deal include a standard "earn-out" clause, whereby acceptable economic performance by HomeChoice post-buyout obligates BioScrip to pay some unspecified sum to DaVita, in addition to the base purchase price.
BioScrip noted that one attraction of the deal is that BioScrip has accrued losses on its income statement, and brings with it a "future tax benefit" that BioScrip will be able to make use of. This tax loss carryforward is estimated to be worth $3.9 million.
Shares of BioScrip are up 2.2% on the news. Shares of DaVita are down 0.2%.
The article BioScrip Buys DaVita Subsidiary for $70 Million originally appeared on Fool.com.
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