Upcoming AWS Coverage on Anthem Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 18, 2016 / Active Wall St. blog coverage looks at the headline from Tampa, Florida based health insurer, WellCare Health Plans, Inc. (NYSE: WCG) as the company announced on November 17, 2016, that it has entered into a definitive agreement with Universal American Corp. (NYSE: UAM), to acquire the latter in an all cash transaction. According to the official statement, the valuation would be $10.00 per stock setting the net transaction value for about $800 million. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
One of WellCare Health Plans' competitors within the Health Care Plans space, Anthem, Inc. (NYSE: ANTM), reported on November 02, 2016, third quarter 2016 results. AWS will be initiating a research report on Anthem in the coming days.
Today, AWS is promoting its blog coverage on WCG and UAM; touching on ANTM. Get all of our free blog coverage and more by clicking on the links below:
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WellCare Health plans is reportedly the third largest publicly traded firm in the Tampa Bay region and sports 3.8 million members across the nation as of September 30, 2016. This merger, if executed is set to bring thousands of members to WellCare's Medicare Advantage plan. The firm had a sturdy third quarter, where, the premium revenue grew y-o-y to $3.6 billion from $3.4 billion.
Breaking down the merger
Universal American Corp., a Fortune 1000 firm, is the leading provider of health care plans across Texas, New York, and Maine. The subsidiary firm to Universal American, known as Collaborative Health Systems (CHS), also offers community physicians move to fee-for-value Medicare payment models.
This merger will reportedly bring 65,000 Medicare Advantage members to WellCare's portfolio in the Houston-Beaumont region with a 4.5 star rated Medicare Advantage plan. The deal is expected to generate annual synergies amounting to more than $25 million by 2019. This acquisition would help strengthen WellCare's Medicare Advantage plans in Texas and New York while establishing its presence in Maine.
The Medicare Advantage portfolio
WellCare, being one of the leading firms in providing health care services, has aimed at strengthening its presence in the Medicare health segment. Prior to this announcement, WellCare entered into an agreement with Car1st Health Plan, to acquire its subsidiaries Care1st Health Plan Arizona, Inc. and ONECare in Arizona for a net valuation of about $157.5 million. Car1st Arizona offered Medicaid and Medicare benefits to more than 114,000 members in Maricopa and Pima counties.
WellCare has seemingly initiated a drive to expand its Medicare Advantage segment and this acquisition is the latest brick to its sound foundation. Universal American holds the partnership with Accountable Care Organizations and offers health care plans.
"Everyone associated with Universal American has worked tirelessly to bring vibrancy to the Healthy Collaboration® model in which we work closely with our physician partners to improve quality and lower costs for Medicare beneficiaries," said Richard A. Barasch, Universal American's Chairman, and CEO, "through this acquisition, WellCare is demonstrating its commitment to this model."
Stock Performance
On Thursday, the stock closed the trading session at $129.07, slightly up 0.60% from its previous closing price of $128.30. A total volume of 1.33 million shares have exchanged hands, which was higher than the 3-month average volume of 443.68 thousand shares. WCG's stock price advanced 9.75% in the last month, 11.23% in the past three months, and 35.15% in the previous six months. Furthermore, on a year-to-date basis, the stock gained 65.03%. Shares of the company have a PE ratio of 27.44.
On the same day, Universal American's stock price surged 11.36%, finishing the day at $9.90, near the acquisition price. A total of 10.21 million shares were exchanged during the day. The company's shares have surged 30.43% in the last month and 41.43% on a YTD basis.
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