Mayo Clinic has reached a deal to sell its ownership stake in a medical center in Abu Dhabi, reportedly for about $150 million.
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 United Arab Emirates. 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 exteneded 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."
