United Health Group Completes Acquisition of Oxford Health Plans
Officials for Minnesota-based UnitedHealth Group on Thursday said that the company has completed the acquisition of Connecticut-based Oxford Health Plans, the Hartford Courant reports. UnitedHealth officials made the announcement on the same day that the Connecticut Insurance Department approved the acquisition. According to UnitedHealth officials, the acquisition will increase current earnings per share and increase growth of full-year earnings per share to 30% or more (Hartford Courant, 7/30). UnitedHealth in late April agreed to purchase Oxford for about $4.9 billion in stock and cash. Under the agreement, which will allow UnitedHealth to increase membership by 1.5 million, the company will purchase about 54.7 million shares of Oxford stock for $1.4 billion in cash (Kaiser Daily Health Policy Report, 5/3). The agreement will provide Oxford stockholders with $16.17 in cash and 0.6357 shares of UnitedHealth stock for each Oxford share. Charles Berg will remain as CEO of Oxford and take responsibility for UnitedHealth operations in the Connecticut area. UnitedHealth officials have said that the company will retain most of the 1,500 Oxford employees in Connecticut for at least two years (Hartford Courant, 7/30).
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