Anthem Inc., Indianapolis, has agreed to acquire Trigon Healthcare Inc., Richmond, Va., for a combination of $1.1 billion in cash and $2.8 billion in Anthem stock.
Anthem, which recently demutualized, already holds Blue Cross and Blue Shield licenses in nine states. It provides or administers major medical coverage for 8.1 million U.S. residents.
Trigon is a for-profit, publicly traded company that holds the Blue Cross and Blue Shield licenses for most of Virginia. It ranks first in the Virginia market, with 2.2 million major medical members and a 35% market share.
Completing the deal would give Anthem a total of 10.3 million members, a leading market share in nine states, and a market share over 30% in seven states.
Larry Glasscock, Anthems president, emphasizes the value of Trigon as a door into the thriving Southeastern health insurance market.
Trigon reported $35 million in net income for the first quarter on $826 million in revenue, up from $32 million in net income on $728 million in revenue for the first quarter of 2001.