Shareholders of Centene, WellCare approve merger
The shareholders of both Centene and WellCare Health Plans have approved a plan for the two companies to merge, they announced June 24. The deal is worth $17.3 billion, and the two companies expect the transaction to close in the first half of 2020.
Centene is a multi-national healthcare enterprise and Fortune 100 company that provides healthcare services and health plans. WellCare, based in Tampa, Florida, offers government-sponsored managed-care services. It also recently acquired the Medicare Part D prescription drug business of Aetna as part of the insurer’s merger with CVS Health.
The merger is yet another megadeal among the healthcare industry, which has seen a huge increase in M&A over the last several years.
The proposals for Centene’s pending acquisition of WellCare were approved as a special meeting of stockholders in St. Louis. Separately, WellCare stockholders approved the deal at a special meeting in New York. Both companies will file the voting results with the SEC, but it will require regulatory approval from 26 states.
"With the addition of WellCare, we are creating a combined company that is better able to serve members and help them achieve better health outcomes,” Michael F. Neidorff, Centene's chairman and CEO, said in a statement. “Centene and WellCare will continue to move forward with federal and regulatory approvals with a focus on improving quality for recipients, fair compensation for providers and savings for states.”
The merger was approved easily by shareholders on both sides of the deal, with 99% of common stock voters approving the deal from WellCare, and over 99% voting for approval from Centene, according to a press release.
“In addition to providing additional opportunities for our employees and better health outcomes for our members, this transaction provides WellCare with an opportunity to become part of a leader in the field, with full access to their systems and capabilities which support enhanced quality for recipients," WellCare CEO Ken Burdick said.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."