Rochester, Minn.-based Mayo Clinic is entering into a $150 million buyout deal with Abu Dhabi Health Services Co., postbulletin.com reported Jan. 30.
According to documents filed by state-owned Abu Dhabi Health Services on Jan. 29, Mayo will sell 25% of its shares in a hospital in the United Arab Emirates. The hospital is Sheikh Shakhbout Medical City, a 741-bed facility.
Sheikh Shakhbout Medical City was established in 2019, and in 2020, collaborated with Mayo, which made a substantial investment of $50 million in cash and other non-material assets, acquiring a 25% equity stake.
According to Mayo Clinic's annual financial reports, the partnership encompasses agreements on hospital expertise, brand licensing and research contributions.
"Abu Dhabi Health Services Co. (SEHA) has signed a definitive agreement to acquire Mayo Clinic's interest in Sheikh Shakhbout Medical City (SSMC). Following the completion of the transaction, SSMC will be wholly owned and operated by SEHA. Mayo Clinic and SEHA remain committed to serving patients from the UAE, the surrounding region and abroad," a Mayo spokesperson told the publication.
Mayo did not give an explanation as to why it was selling its stake.
The initial agreement was set for a duration of 20 years, with the possibility of extending it by an additional 10 years. Sheikh Shakhbout Medical City committed a "conditional pledge" of $150 million to Mayo Clinic, which corresponds to the current buyout amount.