WellPoint, Inc. (NYSE:WLP) recently announced the completion of its acquisition of senior-health focused CareMore Health Group, headquartered in Cerritos, Calif.
The transaction, which has now been approved by regulators in each of CareMore’s markets, was originally announced the beginning of June.
“We are extremely pleased to finalize our agreement even sooner than anticipated,” said Angela F. Braly, chair, president and chief executive officer of WellPoint. “This means we can now focus on the most exciting part of the acquisition, which is expanding CareMore’s proven system of providing Medicare recipients with high-quality, personalized care that improves their lives and well-being.”
The health group’s system offers Medicare Advantage plans and Special Needs plans in some California, Nevada, and Arizona markets.
CareMore has 26 fully staffed Neighborhood Care Centers, and WellPoint is looking to expand the acquisition’s model both within CareMore’s existing markets as well as in WellPoint markets throughout the nation.
WellPoint says the $800 million transaction is expected to be neutral to its earnings in year one, as it invests in expanding CareMore’s capabilities to more members, but will be accretive in subsequent years.
Written by Alyssa Gerace