Mayo Clinic has reached a deal to sell its ownership stake in a medical center in Abu Dhabi, United Arab Emirates, reportedly for about $150 million.
Mayo Clinic selling its stake in Abu Dhabi medical center for $150M
The purchase price is reportedly about $150 million for an ownership stake that dates to 2019.
The Minnesota Star Tribune
January 31, 2024 at 5:26PM
Reuters first reported on the transaction and purchase price this week.
The clinic did not comment on financial terms.
“Abu Dhabi Health Services Company (SEHA) has signed a definitive agreement to acquire Mayo Clinic’s interest in Sheikh Shakhbout Medical City (SSMC),” the Rochester-based health system said in a statement. “Following the completion of the transaction, SSMC will be wholly owned and operated by SEHA.”
In November 2019, Mayo and SEHA announced plans to open the 741-licensed bed hospital for specialty care in the UAE. In a news release at the time, they said the goal was to become “the preferred destination for patients needing serious and complex care in Abu Dhabi, with a plan to transition SSMC into a premier destination for medical care in the Middle East over the next decade.”
The clinic agreed to fund a 25% equity position in the joint venture with $50 million in cash and other intangibles, according to a financial statement in early 2020.
Later, Mayo disclosed it also had a hospital expertise agreement, a brand license agreement and research contribution agreement with the medical center.
“The joint venture has an initial commitment period of twenty years and may be extended by ten years,” Mayo said in a February 2023 financial statement. “The clinic had a $150 [million] conditional pledge from Sheikh Shakhbout Medical City at December 31, 2022.”
The funding is expected to give more than 5,000 Minnesotans, especially in rural areas, high-speed broadband access across the state and help at least 139 businesses and 368 farms.
