Centene Corporation announced today that the company has completed its acquisition of Health Net, Inc. making it one of the largest providers in Medicaid, Medicare Advantage, and other government-sponsored and commercial programs in the country.

With the approval of both companies' shareholders and after receiving all regulatory approvals, Health Net is no longer a publicly traded company and is a wholly owned subsidiary of Centene.

The acquisition increases their scale across health insurance marketplaces while also maintaining Health Net’s presence in the California financial profile, according to the announcement. The company will also benefit from greater scale and a stronger financial profile.
In a statement, Michael F. Neidorff, Centene's president and CEO, called the acquisition "transformative," saying it creates tremendous opportunity for shareholders, members, providers and key stakeholders.

With the company’s geographic and product diversity, shareholders can benefit from the potential value created due to enhanced platforms, he added.

Alongside Neidorff, Jeffrey Schwaneke will serve as executive vice president, chief financial officer and chief executive officer of Health Net. Jay Gellert, former president and chief executive officer of Health Net, and James Woys, former executive vice president, chief financial and operating office and temporary treasurer of Health Net, will assist in Centene’s transition.

The directors of Centene before the acquisition will continue in that capacity for the now-combined company and the company will continue to have its headquarters in St. Louis.

Shareholders received .622 shares of Cenetene’s common stock and $28.25 in cash for each share of Health Net common stock they had at closing. The total transaction is worth approximately $6 billion, according to the announcement.

Centene gained more than four percent in shares after it received its $6.3 billion acquisition approval reported CNBC.

“I would like to take the opportunity to welcome the hardworking employees of Health Net, who share our commitment to enhancing our members' access to higher quality, affordable health care services and to ensuring measurable quality outcomes. We look forward to realizing the many benefits of this strategic acquisition as we work together to transform the health of communities,” stated Neidorff.

Back to HCB News

Business Affairs Homepage