Odyssey acquires VistaCare - official 1-16

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odyssey healthcare to acquire vistacare for about $147.1 millionwednesday, january 16, 2008; posted: 08:47 am

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brief: odyssey healthcare buying arizona rival vistacare (vsta) newsbite - vistacare rising on odsy buyout vistacare upgraded to hold at deutsche bank;vistacare to be bought for $8.60/shr click here for more news >> [color=#002156]more resources for odsy

powerratings (for traders) powerratings (for investors) quotes & charts jan 16, 2008 (financialwire.net via comtex) -- vsta | news | powerrating | pr charts -- january 16, 2008 (financialwire) odyssey healthcare inc. (nasdaq: odsy | news | powerrating | pr charts ) has agreed to acquire fellow hospice care provider vistacare inc. (nasdaq: vsta | news | powerrating | pr charts ) for about $147.1 million. odyssey said the deal includes a cash tender offer for all outstanding shares of vistacare common stock, followed by a cash merger in which odyssey would acquire any remaining vistacare shares.

odyssey said the deal, which is expected to close in the first quarter, is subject to regulatory and other approvals, along with the tender of the majority of vistacare's outstanding shares.

vistacare posted revenue of about $241 million for the fiscal year ended september 30 and with the acquisition, the company expects to exceed $617 million in annual net revenue.

odyssey said the acquisition of vistacare will solidify its position as an industry leader, with about 110 owned or operated locations in 31 states and an average daily census of more than 12,000.

the company said it plans to fund the deal with $30 million of its own cash and a funded commitment of $150 million from ge capital, consisting of a five-year $30 million revolving credit facility and a six-year $120 million term loan.

shares of odyssey fell 39 cents, or 4.4 percent, to close at $8.44, while vistacare shares fell 15 cents, or 2.1 percent, to close at $7.01.