The market turmoil has wreaked yet another change in the financial landscape for healthcare financial managers with the acquisition of banking company Wachovia by healthcare lending colossus Citigroup for $2.16 billion. The acquisition, part of an industry reorganization that could expand substantially, consolidates the healthcare lending market just a bit further. It leaves untouched Wachovia's brokerage operations, however, which weren't part of the deal.
Citigroup, at present, ranks as the largest manager of tax-exempt bonds, with a full one-fifth of the market, according to Thomson Reuters. The buyout comes one week after Bank of America agreed to pick up Merrill Lynch in a $50 billion stock deal. Stay tuned for more consolidation to come--we'll keep you posted.
To learn more about the acquisition:
- read this Modern Healthcare piece (reg. req.)
- read this piece from FierceFinance