Astrana Health, a US-based physician-focused, technology-driven healthcare company, has finalised its acquisition of Prospect Health for $708m.
Prospect Health is an integrated care delivery network with over 11,000 providers in Arizona, Rhode Island, Southern California, and Texas, serving around 600,000 members.
The network includes a California Restricted Knox-Keene-licensed health plan, a management services organisation, a speciality pharmacy, and an acute care hospital.
Astrana completed the acquisition for $708m, a reduction from the initially announced $745m, in line with the terms of the purchase agreement.
The strategic move would enhance Astrana’s ability to deliver value-based care across the US, expanding its reach and capabilities.
Astrana president and CEO Brandon Sim said: “We are excited to welcome Prospect Health’s physicians, providers, and team members to Astrana Health.
“Together, we will further accelerate our mission to drive consistent, coordinated, high-quality patient outcomes at scale, ultimately driving greater value across the healthcare ecosystem.”
Astrana anticipates that Prospect Health will contribute around $1.2bn in total revenue and $81m in adjusted EBITDA each year.
It also aims to achieve synergies of $12m to $15m over the next 12 to 18 months.
Following the acquisition, Astrana has updated its full-year 2025 guidance, projecting total revenue between $3.1bn and $3.3bn, and adjusted EBITDA between $215m and $225m.
Astrana is left with around $700m in net debt, and its management is focused on reducing the net leverage ratio to below 2.5x in the next 12 to 18 months.
Truist Securities led a syndicate of banks providing a term loan for the acquisition, while J.P. Morgan served as the exclusive financial advisor to Astrana on the transaction.
