has enteredinto an agreement with Care 1stHealth Plan Inc., an affiliate of Blue Shield of California, to acquire units Care1stHealth Plan Arizona Inc. and ONECare by Care1st Health Plan of Arizona Inc.
WellCare will acquire theunits for about $157.5 million, inclusive of statutory capital and subject tocertain adjustments.
The deal is expected to befunded with available cash on hand and to close by the first quarter of 2017,pending regulatory approvals and other customary closing conditions.
WellCare expects the deal tobe accretive to EPS in the first year after it closes.
Bass Berry & Sims PLC servedas legal adviser to WellCare. Cain Brothers served as financial adviser andKutak Rock LLP served as legal counsel to Blue Shield of California and theCare1st Health Plan units.