KEY POINTS
  • UnitedHealth strikes a $4.9 billion deal to acquire the DaVita Medical Group unit from kidney dialysis firm DaVita in an all-cash transaction.
  • Last month, DMG posted a $5 million operating loss in the third quarter due to unexpected medical costs.
  • Davita says it plans to focus on its kidney care business and use the proceeds of the sale for "significant stock repurchases."

UnitedHealth struck a $4.9 billion deal on Wednesday to acquire the DaVita Medical Group unit of kidney dialysis firm DaVita in an all-cash transaction.

DaVita Medical Group operates nearly 300 clinics and half a dozen outpatient surgical centers in six states – Florida, California, Colorado, Washington, Nevada and New Mexico.