Ventas Inc., which owns more than 1,300 properties providing senior housing and medical services, announced this week that it will acquire Cogdell Spencer Inc. at a price of between $760 million and $770 million, according to news reports.

San Diego mergers and acquisitions lawyers note from news reports that the purchase includes all 72 medical office buildings currently owned and operated by Cogdell Spencer. Cogdell's shareholders will receive $4.25 per share of common stock, a payout eight percent greater than the company's closing price on December 23.

The move is Ventas' second major acquisition in as many years. Last year it made a record-setting purchase by acquiring Nationwide Health Properties Inc. for $5.7 billion. After the Cogdell acquisition, Ventas can now claim more than 20 million square feet of medical office buildings. Through the move, Ventas is able to strengthen its foothold in the medical services industry, expand its revenue streams and diversify its assets portfolio. It also strengthens the company's status as one of the world's foremost medical real estate firms.

The acquisition is expected to be completed by June.

Cogdell also struck a deal to sell another branch of its business, focused mainly on design and development, to a private-equity firm. The move should earn the new owner about $11 million in net capital.

Chicago-based Ventas will finance their acquisition of Cogdell by assuming existing mortgage debt accumulated by the company. Other Ventas borrowings will also be used.

Source: Bloomberg Businessweek "Ventas to Purchase Cogdell Spencer for as Much as $770 Million" Dec. 27, 2011