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Avera Health closes acquisition of DAKOTACARE

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Avera Health closes acquisition of DAKOTACARE

Following the approval of the South Dakota Division ofInsurance and the stockholders of SouthDakota State Medical Holding Co. Inc. d/b/a DAKOTACARE, AveraHealth closed theacquisition ofall the outstanding shares of the company Jan. 1, DAKOTACARE said in an annualstatement for the year ended Dec. 31, 2015.

As part of the transaction, all of the class C nonvoting commonstock was redeemed by DAKOTACARE in accordance with a stock redemptionagreement dated Oct. 31, 2011, and 100% of the outstanding class B and class Sstock owned by South Dakota State Medical Association, consisting of 100% ofthe outstanding shares of stock in DAKOTACARE, was purchased by Avera Health.

DAKOTACARE received cash of nearly $24 million, representedby $23 million in surplus notes and a direct capital surplus contribution of$976,363.

At the close of the deal, Avera Health was the soleshareholder of the company and the company's operations of offering insuranceproducts and third-party administrative services continued.