DaVita has entered into a definitive agreement to acquire DSI Renal Inc (DSI) for approximately $690m, subject to adjustments.

DaVita anticipates that the company will have to divest some centers as a condition of the transaction.

DaVita chairman and CEO Kent Thiry said this acquisition introduces several new geographies and makes them a more effective competitor in selected areas and will be able to bring the broader line of DaVita chronic kidney disease services to DSI patients.

"These services will be beneficial for patients, physicians, payors, and taxpayers in providing more effective care and helping to reduce costs to the health care system," Thiry said.

DaVita expects to close the transaction in the second or third quarter of this year which is subject to customary closing conditions including Hart-Scott-Rodino antitrust clearance.