NU Online News Service, June 18, 11:09 a.m. – UnitedHealth Group Inc., Minnetonka, Minn., has agreed to acquire AmeriChoice Corp., Vienna, Va., for $530 million in stock and the assumption of $30 million in debt.
AmeriChoice is a privately held, 13-year-old company that specializes in running state Medicaid programs. It generates about $900 million a year in revenue.
UnitedHealth, a large managed care company, gets about $1.1 billion a year in revenue from its own Medicaid services unit, the company says.
UnitedHealth wants to combine its own Medicaid unit with the AmeriChoice operations under the AmeriChoice name. Anthony Welters, the AmeriChoice chief executive, would lead the combined Medicaid operations, UnitedHealth says.
UnitedHealth hopes to complete the deal by the end of the year.