Sonida Senior Living announced a $1.8 billion cash‑and‑stock merger with CNL Healthcare Properties, a public non‑traded REIT that owns 70 senior‑housing communities across 26 states. The deal values the transaction at $6.90 per CNL share, comprising $2.32 in cash and $4.58 in newly issued Sonida common stock—about 66 % of the consideration in equity and 34 % in cash. The combined company will have an enterprise value of roughly $3 billion and a market capitalization of approximately $1.4 billion upon closing.
The merger expands Sonida’s footprint to 153 owned communities, making the combined entity the eighth‑largest U.S. senior‑housing owner‑operator. CNL’s high‑quality assets add geographic breadth and a larger resident base, positioning the company to capture demand in a market where new supply is constrained and the senior population is growing. The portfolio now spans 26 states, giving the combined firm a diversified regional presence that can mitigate local market risks.
Financially, Sonida’s trailing 12‑month revenue was $309.37 million, while CNL reported $379 million. The transaction is expected to deliver 28 %–62 % normalized FFO accretion and $16–20 million in annual cost synergies within twelve months of closing. Deleveraging is projected to move net debt/EBITDA from low‑9x to mid‑upper‑7x, driven by the scale of procurement, shared staffing, and technology deployment that will reduce operating costs and improve margins.
Management and governance will be led by Sonida CEO Brandon Ribar, who will head the combined company. Michael Simanovsky will become board chairman, and former CNL CEO Stephen Mauldin will join the board. The leadership structure reflects Sonida’s operational expertise and technology investments, which will be leveraged across CNL’s asset base to accelerate growth and improve profitability.
The senior‑living industry is experiencing supply constraints and demographic growth, with rising expectations for personalized care and technology integration. By combining Sonida’s owner‑operator model with CNL’s portfolio, the new entity can capitalize on demand for middle‑market senior housing and memory‑care facilities while deploying advanced technology to enhance resident experience. The merger therefore positions the company to benefit from tailwinds such as an aging population and headwinds such as limited new construction.
The transaction is expected to close in late first quarter or early second quarter of 2026, pending regulatory approvals, shareholder votes, and integration planning. The timeline reflects the complexity of merging two large REIT structures and aligning their operational systems.
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