Health Care Service Corporation Purchases MEDecision
MEDecision, Incorporated and Health Care Service Corporation (HCSC) announced a definitive merger agreement (pdf). HCSC will purchase the remaining shares of MEDecision for almost $121 million. That amount includes payments to cover outstanding warrants and options.
The deal has already received the approval from the Boards of Directors for both companies. Regulatory approval, however, is still pending. The purchase is expected to be completed close to the beginning of the fourth quarter in 2008.
MEDecision is a leading provider of collaborative healthcare management solutions. The organization will maintain its status as an independent company that supports health insurance companies.
It will continue to pursue the deployment of two new collaborative healthcare management solutions, Nexalign and Alineo. Both of those programs are still under development. It is further anticipated that the acquisition will increase the ability of MEDecision to provide its services and expand technology development efforts.
HCSC oversees the operations of Blue Cross and Blue Shield in New Mexico, Texas, Illinois, and Oklahoma. It is the largest customer-owned health insurer in the U.S. As well, it is the fourth largest provider of health insurance across the country; providing coverage for over 12.4 million individuals. The health insurance provider intends to improve its ability to provide quality, cost-effective healthcare to members covered.
June 18, 2008 Related topics: Mergers & Acquisitions