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UAM - Universal American News Story

$9.97 0.0  0.0%

Last Trade - 27/04/17

Sector
Healthcare
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £978.8m
Position in Universe th / 6846

BRIEF-WellCare Health Plans to buy Universal American for $10/share

Thu 17th November, 2016 12:53pm
Nov 17 (Reuters) - Universal American Corp  UAM.N : 
    * Wellcare to acquire Universal American Corp. 
    * Deal for $10.00 per share of common stock 
    * Transaction is expected to be funded by Wellcare through 
available cash on hand 
    * Transaction expected to be accretive to Wellcare's 
earnings 
    * Deal expected to produce $0.70-$0.80 of accretion to 
Wellcare in second year after closing 
    * Wellcare expects annual synergies of approximately $25 
million to $30 million by 2019 from deal 
    * Proposed price for Universal American's common shares 
implies an equity value of approximately $600 million 
    * Deal is expected to produce $0.60 to $0.70 of accretion to 
Wellcare's adjusted earnings per share in first year after 
closing 
    * Acquisition is expected to add about 65,000 MA members in 
Houston-Beaumont, Texas  to Wellcare's medicare health plans 
membership 
    * With retirement of company's preferred shares and its 
convertible debt, transaction would be valued at approximately 
$800 million 
    * Acquisition expected to add about 14,000 MA members in 
northeast, primarily in New York, to Wellcare's medicare health 
plans membership 
 
Source text for Eikon:  urn:newsml:reuters.com:*:nPnbWdN8pa 
Further company coverage:  UAM.N  WCG.N  
 
 ((Bangalore.newsroom@thomsonreuters.com;))
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