Aetna Inc. has agreed to pay about $600 million to acquire Prodigy Health Group Inc., a large administrator of self-funded health plans.
Prodigy, New York, runs plans with a total of about 600,000 medical members and 450,000 pharmacy plan members in 15 states. The company is owned by a holding company controlled by One Equity Partners L.L.C., New York, the private equity arm of JPMorgan Chase & Company, New York.
Prodigy operates under the names Meritain Health for third-party administrator (TPA) business, American Health for medical management business and Scrip World for pharmacy benefits management business.
Aetna, Hartford (NYSE:AET), says it will use available resources to finance the deal and hopes to get the regulatory approvals needed to complete the deal between June 30 and Dec. 31.
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After the deal is completed, Prodigy will keep its current managers, operating structure and brands, Aetna says.