Alpha Gen Capital
Wed, Mar. 23, 12:40 PM
- Health Net (HNT +4.7%) and Centene (CNC +5.6%) buck the market's down day. The bull catalyst is the approval of their planned merger by the California Department of Insurance. Centene announced its $6.8B takeover of Health Net in July 2015. The transaction should close shortly.
- Previously: Centene takes out Health Net for $6.8B (July 2, 2015)
Oct. 26, 2015, 7:51 AM
- At a special meeting of shareholders held on Friday, Centene (NYSE:CNC) 99% of the shares voting backed the Health Net (NYSE:HNT) merger. The affirmative votes represented 85% of all outstanding shares. Shareholders also approved the increase of authorized shares to 400M from 200M.
- Also on Friday, 97% of Health Net's voting shareholders backed the merger, representing more than 78% of all outstanding shares.
- The transaction is expected to close in early 2016.
- Previously: Centene takes out Health Net for $6.8B (July 2)
Oct. 19, 2015, 3:05 AM
- Shareholders will get their say this week on two proposed health insurer mergers: Aetna's (NYSE:AET) $37B offer for Humana (NYSE:HUM), and Centene's (NYSE:CNC) $6.3B bid for Health Net (NYSE:HNT).
- Although consumer advocates have raised concerns about whether the combination will lead to less competition and higher prices, proxy advisors ISS and Glass Lewis have given both deals a thumbs-up.
- Aetna and Humana investors are scheduled to vote this afternoon and Centene and Health Net shareholders will cast their ballots on Friday.
Sep. 21, 2015, 4:55 PM
Jul. 2, 2015, 7:50 AM
- Centene (NYSE:CNC) acquires managed healthcare firm Health Net (NYSE:HNT) for ~$6.8B, including the assumption of ~$500M of debt. The combined firms will have estimated pro forma premium and service revenues of ~$37B this year and the merger will be significantly accretive to EPS in the first year after closing.
- Under the terms of the deal, Health Net shareholders will receive 0.622 shares of Centene and $28.25 in cash for each Health Net share. The total consideration of $78.57, based on CNC's closing price yesterday, represents a 21% premium over HNT's price at yesterday's close. Once the transaction is finalized in early 2016, CNC shareholders will own 71% of the combined entity while HNT shareholders will own 29%.
- Centene will fund the cash portion of the deal with cash on hand and debt.
May 29, 2015, 6:35 PM
- A sale of Humana (NYSE:HUM) could be the "first domino in overdue managed care M&A,” Leerink Partners analyst Ana Gupte says, believing a deal or even talk of a deal will force health insurers, both large and small, to consider their M&A options.
- Gupte expects the next year will see multiple strategic actions among the major players, and she remains bullish on the sector broadly for both fundamental reasons and the benefits to shareholders from such consolidation.
- The industry eventually will narrow to a "Big 3" from its current “Big 5" as big insurers target midsized firms, Gupte says, citing WellCare Health Plans (NYSE:WCG), Centene (NYSE:CNC), Health Net (NYSE:HNT) and Molina Healthcare (NYSE:MOH) as the most attractive takeout targets.
- Earlier: Humana spikes 20% after WSJ report says it wants to sell itself
Mar. 19, 2015, 10:34 AM
- According to Bloomberg, major providers of Medicare coverage like Humana (HUM +0.9%), WellCare (WCG +0.6%) and Centene (CNC +1.4%) are high on the acquisition radar of large insurers who have relatively modest exposure to the rapidly growing Obamacare-stoked space. Likely suitors would be Aetna (AET +1.3%) and Anthem (ANTM +0.3%).
- There hasn't been much M&A activity among health insurers due to the uncertainties surrounding the implementation of the Patient Protection and Affordable Care Act. Now that its implications are better understood, the number of deals should perk up.
- No bargains are out there, though. S&P's index of health insurers galloped 57% last year. The current valuations for Humana, WellCare and Centene are $26.9B, $4.1B and $8.3B, respectively, all at record levels since at least 2007.
- Anthem CFO Wayne DeVeydt says his firm will continue to make smaller deals although a larger purchase is not out of the question. Other firms declined to comment.
- Leerink Partners analyst Ana Gupte says a likely scenario is consolidation among the five largest health insurers: UnitedHealth Group (UNH +0.8%), Anthem, Aetna, Cigna (CI +0.6%) and Humana.
- Aging baby boomers, born between 1946 and 1964, are driving the increase in Medicare enrollment. Membership is expected to rise to 68.4M in 2023, up more than 25% from this year's 54.4M. Medicaid is projected to add 9.3M people over the same time frame.
Jan. 26, 2015, 12:48 PM
- Centene (CNC +1.3%) acquires Eugene-based Agate Resources, a diversified holding company that offers a variety of healthcare products and services to Oregon residents.
- Chairman and CEO Michael F. Neidorff says, "We view the Oregon CCO (coordinated care organization) model as consistent with our philosophy that healthcare is best delivered locally. Agate has demonstrated success working closely with providers and key community stakeholders and we are committed to maintaining that approach in the future."
- The transaction, expected to close in Q3, will be accretive to earnings in the first year following the close. Financial terms are undisclosed.
Jul. 18, 2014, 10:23 AM
Dec. 12, 2013, 8:13 AM
- Centene (CNC) agrees to acquire a ~68% interest in U.S. Medical Management, a provider of in-home health services, for $200M in cash and stock as it continues to expand its stable of services.
- In conjunction with the deal, CNC also is forming a new healthcare enterprise holding company that will connect it and other health solution providers.
- CNC expects the deal to add $0.02-$0.05 to EPS next year and $0.20-$0.25 in 2015, and add annual revenue of $220M-$240M.
Jan. 14, 2013, 9:15 AM
Centene (CNC) agrees to buy AcariaHealth from Enhanced Equity Funds for $152M, in a move that expands CNC's specialized pharmacy benefit services for such complex diseases as hepatitis C, hemophilia, multiple sclerosis, rheumatoid arthritis and oncology.| Jan. 14, 2013, 9:15 AM
Jul. 9, 2012, 9:45 AMAmerigroup (AGP) +38% and WellPoint (WLP) +3.8% following news of the the latter buying Amerigroup for $4.46B. The deal is a big bet on the expansion of Medicaid, and the combined firm will serve over 4.5M beneficiaries of state-sponsored healthcare plans. Other Medicaid insurers are also rising, including Wellcare (WCG +13.3%) and Centene (CNC +16.1%) | Jul. 9, 2012, 9:45 AM