NU Online News Service, Dec. 16, 2003, 5:27 p.m. EST – UnitedHealth Group Inc., Minnetonka, Minn., has agreed to pay a reasonable price for Mid Atlantic Medical Services Inc., Rockville, Md., according to an analysis of the deal conducted by Lehman Brothers Inc., New York.[@@]
UnitedHealth announced plans in October to buy the smaller managed care company in a deal with a value of about $2.7 billion.
The companies have filed a new, amended version of the deal registration statement with the U.S. Securities and Exchange Commission that includes Lehman Brothers’ discussion of the price.
The Lehman analysis shows that comparable managed care companies have paid prices that amounted to 20% to 141% of “last 12 months’ revenue” and an average of $380 to $1,763 per member.