M2 EQUITYBITES-January 22, 2020-Centene and WellCare to Close Merger on 23 January
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22 January 2020 - US-based health insurers Centene Corp. (NYSE: CNC) and WellCare Health Plans, Inc. (NYSE: WCG) have satisfied all regulatory requirements under the merger agreement to complete the pending transaction, including review by the US Department of Justice, the companies said.
Subject to the satisfaction of customary closing conditions, the parties expect to close the transaction and the related divestitures of WellCare's Medicaid and Medicare Advantage plans in Missouri, WellCare's Medicaid plan in Nebraska and Centene's Medicaid and Medicare Advantage plans in Illinois on or about January 23, 2020.
In March, Centene agreed to acquire WellCare in a cash and stock transaction for USD 305.39 per share based on Centene's closing stock price on 26 March for a total enterprise value of USD 17.3bn pursuant to the terms of a definitive merger agreement.
Centene Corp., a Fortune 100 company, is a diversified, multi-national healthcare enterprise that provides a portfolio of services to government sponsored and commercial healthcare programmes, focusing on under-insured and uninsured individuals.
Centene operates local health plans and offers a range of health insurance solutions.
It also contracts with other healthcare and commercial organisations to provide specialty services including behavioural health management, care management software, correctional healthcare services, dental benefits management, commercial programmes, home-based primary care services, life and health management, vision benefits management, pharmacy benefits management, specialty pharmacy and telehealth services.
Headquartered in Tampa, Fla., WellCare Health Plans, Inc. (NYSE: WCG) focuses primarily on providing government-sponsored managed care services to families, children, seniors and individuals with complex medical needs primarily through Medicaid, Medicare Advantage and Medicare Prescription Drug Plans, as well as individuals in the Health Insurance Marketplace.
WellCare serves approximately 6.4m members nationwide as of September 30, 2019.
According to Centene, the combination will enable the combined company to provide access to more comprehensive and differentiated solutions across more markets with a continued focus on affordable, high-quality, culturally-sensitive healthcare services.
The enterprise would have approximately...