WellCare Health Plans Inc. said it will acquire Universal American Corp. in a deal that could be worth about $800 million.
WellCare is a Tampa, Florida-based company that focuses on selling Medicaid plans, Medicare Advantage plans and Medicare Part D prescription drug plans.
WellCare provides or administers benefits for about 3.8 million people.
Universal American is a White Plains, New York-based Medicare Advantage plan provider. The company also has an arm, Collaborative Health Systems, that helps physicians set up and run Medicare accountable care organizations.
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Universal American covers 114,000 Medicare Advantage plan enrollees, and it helps run accountable care organizations in 11 states.
Both WellCare and Universal American have avoided getting involved with the Affordable Care Act public exchange system.
The $800 million deal value would include a cash payment of $10 per share of Universal American common stock. WellCare has also agreed to move to retire about $200 million in Universal American preferred shares and convertible debt.
Lawyers in the New York City office of Kirkland & Ellis LLP and the New York City office of Bass, Berry & Sims PLC are representing WellCare.
Lawyers in the New York City office of Paul, Weiss, Rifkind, Wharton & Garrison LLP are representing Universal American.