UNITEDHEALTH GROUP INC acquired PacifiCare Health Systems, Inc. for 1.10 UnitedHealth shares plus $21.50 cash per PacifiCare share (about 111.6 million shares and $2.2 billion cash), a transaction announced in July 2005, structured as combination. The deal was a Merger.
PacifiCare Health Systems, Inc. operates in UnitedHealthcare, is based in Cypress, California, USA (western US). PacifiCare Health Systems (NYSE: PHS) provided health care and benefit services to approximately 9 million people, principally in the western United States, and operated the Secure Horizons Medicare brand.
Bringing together PacifiCare's extensive western network and Medicare capabilities with UnitedHealth Group's organized system of care and Centers of Excellence to advance a national presence in a fragmented health system.
Scale in fast-growing western markets and a leading Medicare Advantage brand. Expected accretion of $0.05-$0.06 per share in the first year; UnitedHealth planned to retire $1.1 billion of PacifiCare debt. UnitedHealthcare / Ovations (Medicare)
This combination will bring the best of both companies forward in a manner that respects each one's unique history and contributions while advancing a national presence that can help address a highly fragmented health care system.Stephen J. Hemsley, President and COO, UnitedHealth Group
This merger will enhance our resources, strengthen our product offerings and build on the leadership of the PacifiCare brand on the Pacific coast and our Secure Horizons brand nationally.Howard Phanstiel, Chairman and CEO, PacifiCare
Advisory firms were not disclosed for this transaction.