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BioScrip agrees to acquire HomeChoice Partners

BioScrip (BIOS) announced that it has entered into a definitive agreement to acquire HomeChoice Partners, a provider of alternate-site infusion pharmacy services, for $70M in cash. HomeChoice is a majority-owned subsidiary of DaVita (DVA). The purchase price is subject to adjustment pursuant to the terms of the agreement including potential additional consideration based on the results of operations. BioScrip also expects to realize the value of a future tax benefit estimated at $3.9M as a result of the transaction. The transaction is subject to customary closing conditions, including regulatory approval. The company expects the transaction will close in the first quarter of 2013. HomeChoice is expected to generate approximately $70M in annual revenue. Once fully integrated, this business should generate Adjusted EBITDA margins between 12% and 14%. The company estimates that an acquisition of this size can take 9 to 12 months to fully integrate.