Home | Business News | Browse by Publication | P | PR Newswire

PacifiCare Health Systems Signs Definitive Agreement to Acquire American Medical Security Group, Inc.

Publication: PR Newswire
Publication Date: 15-SEP-04 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
* Acquisition by PacifiCare will add 314,000 commercial PPO lives, representing commercial membership expansion of more than 13%

* American Medical Security Group shareholders will receive $32.75 per share in cash

* Strengthens PacifiCare's position in individual and small group segments

* Expected accretion increases PacifiCare's 2005 net income guidance to $360-$375 million

PacifiCare Health Systems, Inc. and American Medical Security Group, Inc. jointly announced today that they have signed a definitive agreement whereby PacifiCare will acquire all of the outstanding shares of common stock of American Medical Security (AMS) through a cash merger in which AMS will become a wholly-owned subsidiary of PacifiCare. Under the terms of the merger agreement, PacifiCare will pay $32.75 in cash for each share of AMS common stock outstanding, for a total equity purchase price of approximately $502 million on a fully diluted basis. PacifiCare will also assume approximately $30.2 million of AMS debt. PacifiCare will finance the acquisition through $400 million of term debt from a $750 million bank commitment and the use of internally generated cash. The new $750 million bank facility will include $550 million of term debt, $150 million of which will be...

Read the FULL article now - Try Goliath Business News - FREE!   
You can view this article PLUS...

  • Over 5 million business articles
  • Hundreds of the most trusted magazines, newswires, and journals (see list)
  • Premium business information that is timely and relevant
  • Unlimited Access

Now for a Limited Time, try Goliath Business News - Free for 3 Days!
Tell Me More   Terms and Conditions

Get Goliath Business News for 1 year - Just $99 (Save 65%)
Tell Me More   Terms and Conditions

Already a subscriber? Log in to view full article



More articles from PR Newswire
Quilmes Industrial (Quinsa), S.A., Announces Preliminary Results of 'D..., September 16, 2004
AMS Homecare Receives CDN $250,000 Loan From Business Development Bank..., September 16, 2004
The Experiential Agency Closes Second Round of $2.5 Million Funding in..., September 16, 2004
Seniors Save More Than $7 Million With Walgreens Health Initiatives Me..., September 16, 2004
LodgeNet Continues Integrating Its sigNETure TV System Into Hilton Fam..., September 16, 2004

Looking for additional articles?
Search our database of over 3 million articles.

Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication name or publication date.

About Goliath
Whether you're looking for sales prospects, competitive information, company analysis or best practices in managing your organization, Goliath can help you meet your business needs.

Our extensive business information databases empower business professionals with both the breadth and depth of credible, authoritative information they need to support their business goals. Whether it be strategic planning, sales prospecting, company research or defining management best practices - Goliath is your leading source for accurate information.