While financial terms of the deal were not disclosed, a source with knowledge of the transaction characterized the deal value as close to $400 million.
The deal, which is expected to close early next year, represents City of Hope’s first major push outside Southern California and sets it on the road to becoming a national cancer research and treatment network. The combined organization will have a staff of 11,000 — including 575 physicians — in four states stretching from coast to coast.
“The combined organization will be one of the largest cancer research and treatment organizations in the country with one of the largest geographic footprints, significantly increasing the number of people who can access high-quality cancer care and the latest life-saving treatments,” Robert Stone, City of Hope’s chief executive, said in an emailed statement about the deal.
The center was founded in 1913 in Duarte as a tuberculosis sanitorium. In the 1940s, with tuberculosis on the decline as antibiotic treatments became more widespread, City of Hope turned to cancer research, emerging as a key research and treatment center. In 1981, the National Cancer Institute designated it a comprehensive care cancer research and treatment center; it’s now one of 51 such centers across the nation.
Over the last several years, City of Hope has focused on expanding its reach within Southern California, acquiring treatment practices and clinics throughout the region. It’s now constructing a $1 billion, 190,000-square-foot campus in Irvine that will nearly rival the Duarte headquarters. The cancer research center portion is expected to open next year while a treatment hospital is expected to open in 2025.
Cancer Treatment Centers of America started in 1988 in Zion, Ill. Once the acquisition by City of Hope is completed, Cancer Treatment Centers of America will be converted to nonprofit status. And Pat Basu, the centers’ chief executive, will remain in that post but will report to Stone.