Prospect Acquires ProMed

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Prospect Medical Holdings Inc. said Tuesday that it has acquired Ontario-based ProMed Health Care for $48 million in cash and stock.


The deal is expected to close on June 1. Both boards have approved the deal.


“ProMed is the largest acquisition in Prospect’s history and is also the most significant,” Jack Terner, Prospects’ chairman and chief executive said. “The combination of Prospect and ProMed creates an organization with approximately 250,000 covered lives, ranking us as the sixth-largest insurance provider in the state of California.”


Shares in Prospect closed up 5 cents to $4.30 Tuesday in trading on the American Stock Exchange.

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