UnitedHealth Group Inc., the No. 1 U.S. health insurer, agreed to buy healthcare benefits company AmeriChoice Corp. for about $560 million in
stock and assumed debt to expand its Medicaid business.
UnitedHealth, parent company of UnitedHealthcare, will issue about 5.5 million shares and assume
$30 million of debt. The purchase is expected to add more than 5
cents a share to UnitedHealth’s earnings, the Minnetonka, Minn.-
based company said in a press release distributed by Business
Wire.
AmeriChoice’s Medicaid business, available in New York, New
Jersey and Pennsylvania, will be combined with UnitedHealth’s unit
and run by AmeriChoice CEO Anthony Welters
under the AmeriChoice name.
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Closely held AmeriChoice’s existing business is expected to
have more than $900 million in revenue this year, the statement
said.
Bloomberg News
