Astrana Health, Inc. has officially closed the acquisition of Prospect Health, a value-based, integrated care delivery network, for a reduced total purchase price of $708 million, down from the previously announced $745 million. This acquisition is expected to significantly deepen Astrana's capabilities in providing access to high-quality and high-value care to communities across the country.
The company anticipates that Prospect Health will contribute approximately $1.2 billion in total revenue and $81 million in adjusted EBITDA on a full-year basis. Additionally, Astrana expects to realize between $12 million to $15 million of synergies over the next twelve to eighteen months.
As a result of the acquisition, Astrana is updating its full-year 2025 guidance to total revenue between $3.1 billion and $3.3 billion and adjusted EBITDA between $215 million and $225 million, and the company is reiterating its second-quarter 2025 guidance.
With the completion of the transaction, Astrana will now have approximately $700 million of net debt on its consolidated balance sheet. The management is committed to reducing the company’s net leverage ratio to below 2.5x over the next twelve to eighteen months.
Truist Securities led a syndicate of banks that provided a term loan used to finance the acquisition of Prospect Health, while J.P. Morgan served as the exclusive financial advisor to Astrana in connection with the transaction.
Astrana Health is a physician-centric, AI-powered healthcare company that supports more than 20,000 providers and over 1.6 million patients in value-based care arrangements through its affiliated provider networks, management services organization, and integrated care delivery clinics spanning primary, specialty, and ancillary care. As a result of these announcements, the company's shares have moved -1.74% on the market, and are now trading at a price of $24.625. For more information, read the company's full 8-K submission here.
