A giant managed care company has announced plans to acquire midsize Mountain State carrier.
UnitedHealth Group Inc., Minnetonka, Minn., has agreed to pay $2.6 billion in cash for Serra Health Services Inc., Las Vegas.
The boards of both companies have approved the deal, but the companies still need approval from Sierra’s stockholders and from state regulators in California, Nevada and Texas.
The companies hope to complete the deal by Dec. 31.
If the Sierra board decides to break off the deal, it might have to pay UnitedHealth an $85 million termination fee, the companies report.
Sierra provides health coverage for about 310,000 members of employer-sponsored plans in Nevada and 320,000 people in senior and government programs throughout the United States.