Centene wraps up $17.3bn acquisition of WellCare Health Plans
Centene Wellcare merger : Missouri-based Centene has wrapped up its previously announced $17.3 billion acquisition of rival US health insurer WellCare Health Plans, based in Florida.
The Centene Wellcare merger announcement was made in March 2019 in a move to create a new healthcare enterprise, focused on offering government-sponsored healthcare programs.
The Centene Wellcare combination is expected to become one of the top players in the Medicaid, Medicare, and the health insurance marketplace.
Pursuant to the terms of the Centene Wellcare merger, the latter became a wholly-owned subsidiary of the Missouri-based health insurer. As per the terms of Centene acquisition of Wellcare, the latter’s shareholders sold each of their shares to get 3.38 shares of Centene common stock and $120 in cash.
Operating as Centene, the enlarged US health insurance company now offers healthcare to more than 24 million members in all the 50 states, which equates to 1 in 15 individuals across the country.
With the Centene Wellcare merger closing taking place, the sale of Centene’s Illinois Medicaid and Medicare Advantage plans, WellCare’s Missouri Medicaid and Medicare Advantage plans, and WellCare’s Nebraska Medicaid plan, that were previously announced, have also been wrapped up.
Commenting on the Centene Wellcare merger, Michael F. Neidorff – Centene Chairman, President and CEO, said: “We are pleased to have completed this transformational acquisition to create a leading healthcare enterprise committed to helping people live healthier lives through access to high-quality and affordable healthcare solutions.
“Through the integration planning process, it has become even more apparent that our goals, cultures and values are aligned. Centene is committed to building on our mission to further improve the health of the communities we serve. We look forward to Centene’s next chapter where we will continue to drive growth and create value for shareholders.”