Gentiva Acquires Odyssey HealthCare (GTIV, ODSY, BAC, GE)

Gentiva Health Services Inc. GTIV announced its purchase of Odyssey HealthCare Inc. ODSY for $1 billion earlier today. Gentiva (GTIV) will pay $27 for each share of Odyssey (ODSY). This price is a 40% premium to Odyssey’s Friday closing price. Jefferies & Co. analyst Arthur Henderson told the Wall Street Journal that the acquisition is a strategically sound move that will not only drive incremental growth for the company but will also allow it to diversify its business while generating operations synergies. Gentiva will not consolidate its home-health operation with Odyssey’s hospice operations. The acquisition will be financed with new debt. The acquirer also has a borrowing commitment from a syndicate of Bank of America BAC and General Electric Co. GE