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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

UPDATE 1-WellCare to buy Universal American for about $600 mln

Thu 17th November, 2016 1:13pm
(Adds details, shares) 
    Nov 17 (Reuters) - Health insurer WellCare Health Plans Inc 
 WCG.N  said on Thursday it would buy smaller rival Universal 
American Corp  UAM.N  for about $600 million to expand its 
Medicare Advantage presence. 
    The deal comes at a time when analysts are expecting a 
bright future ahead for Medicare Advantage (MA), which provides 
healthcare benefits to more than one-third of people in the  
United States, under President-elect Donald Trump's 
administration. 
    Trump has said he wants to modernize Medicare, but has not 
provided any details. 
    The deal is expected to add about 65,000 MA members in a 
4.5-Star plan in Houston-Beaumont, Texas, and about 14,000 MA 
members in a 4.0-Star plan in the Northeast, primarily in New 
York, to WellCare's Medicare Health Plans membership. 
    WellCare will pay about $10 per Universal American share in 
cash, representing a 12.5 percent premium to the stock's 
Wednesday close. 
    Universal American shares rose 10.2 percent to $9.80 in 
light premarket trading. 
    WellCare said it would also assume about $200 million in 
Universal American's preferred shares and convertible debt. 
    The deal, which was approved by the board of directors of 
both companies, is expected to be funded through available cash 
on hand.  urn:newsml:reuters.com:*:nPnbWdN8pa 
    BofA Merrill Lynch is WellCare's financial adviser while 
Kirkland & Ellis LLP and Bass, Berry & Sims Plc are its legal 
advisers. 
    MTS Health Partners LP is Universal American's financial 
adviser and Paul, Weiss, Rifkind, Wharton & Garrison LLP 
provided legal advice. 
 
 (Reporting by Natalie Grover and Ankur Banerjee in Bengaluru; 
Editing by Martina D'Couto) 
 ((natalie.grover@thomsonreuters.com)(;)(within U.S. +1 646 223 
8780, outside U.S. +91 99 1694 7070)(; Reuters 
Messaging:)(natalie.grover.thomsonreuters.com@reuters.net)) 
 
Keywords: UNVRSL AMERICAN M&A/WELLCARE
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