Tuesday, November 30, 2004

UNITEDHEALTH ACQUIRES DEFINITY FOR APPROXIMATELY $300 MILLION

UnitedHealth Group will acquire privately held Definity Health Corp., a provider of health benefits to employers using self-funded benefit plans, for approximately $300 million in cash. The move is designed to increase UnitedHealth's presence in the "fast-growing high-deductible benefits business," according to the Wall Street Journal.

A health care brand, Definity Health will operate within the Uniprise business segment of UnitedHealth.

Following the merger, Definity Health customers will have access to UnitedHealth's network of 460,000 physicians and other care providers, as well as 4,000 hospitals, according to a press release.

Subject to government approval, the transaction is expected to be completed before the end of the year. Upon completion of the acquisition, UnitedHealth expects it will serve approximately 2.5 million people.

United Health said the acquisition will be slightly accretive to UnitedHealth Group's earnings per share.