NU Online News Service, Oct. 27, 2003, 5:54 p.m. EST – UnitedHealth Group Inc., Minnetonka, Minn., has agreed to acquire Mid Atlantic Medical Services Inc., Rockville, Md., for about $2.7 billion in cash and stock, or about $1,350 for each of MAMSI’s health plan members.
MAMSI manages medical care for 2 million people in Delaware, Maryland, Washington, Virginia, northern North Carolina and southeastern Pennsylvania.
Dr. William McGuire, chairman of UnitedHealth, says his company is proposing the deal to increase its market share in the mid-Atlantic region, which is home to 30 Fortune 500 employers as well as the seat of the federal government.
Together, UnitedHealth and MAMSI have about 3.5 million people in the region, UnitedHealth says.
The acquisition is subject to approval by antitrust regulators as well as shareholders and insurance regulators.