Kindred Healthcare announced Tuesday that its board has agreed to an acquisition by Humana Inc. and two private equity partners in a $4.1 billion cash deal.

Kindred confirmed that the deal would divide its product line into two new entities, one devoted to home care and the other for speciality hospitals.

Immediately following the acquisition, Kindred’s home health, hospice and community care businesses will be spun off into a standalone company called Kindred at Home. Ownership will be split 40/60 between Humana and the equity firms TPG Capital and Welsh, Carson, Anderson & Stowe.

Kindred’s long-term acute care hospitals, rehabilitation centers and contract rehabilitation services will be operated as a specialty hospital company owned by TPG and WCAS under the Kindred Healthcare name. 

In an email to company employees Tuesday morning, Kindred Healthcare President and CEO Ben Breier said that he would continue in his role, while current Executive Vice President and President of Kindred at Home David Causby will become CEO of Kindred at Home.

“Importantly, we expect the flexibility and resources gained through the investments by Humana, TPG and WCAS to create new opportunities for teammates, enhance innovation in both platforms and further our culture of a patients-first approach to high-quality, compassionate care,” Breier wrote. “It should be business as usual at Kindred until the transaction closes, which is expected to occur during the summer of 2018, subject to approvals and customary closing conditions.

Under a shared services agreement, Kindred Healthcare will continue to provide certain support functions to Kindred at Home through the transition.

Forbes reports Humana’s interest in Kindred at Home is in line with the insurance company’s population health strategy that prefers lower-cost alternatives to skilled nursing facilities.

“We are confident that these new capabilities will help Humana continue to modernize home health and meaningfully improve the member and provider experience,” Humana CEO Bruce Broussard said.

The deal also will pay Kindred stockholders $9.00 per share of Kindred common stock, representing a premium of approximately 27 percent to Kindred’s 90-day volume weighted average price for the period ending December 15, 2017.