UNITEDHEALTH GROUP INC acquired Sierra Health Services, Inc. for $43.50 per share in cash; total equity value approximately $2.6 billion, a transaction announced in March 2007, structured as all cash.
Sierra Health Services, Inc. operates in UnitedHealthcare, is based in Las Vegas, Nevada, USA (Southwest). Sierra Health Services was a Las Vegas-based managed care company serving the fast-growing US Southwest, with a strong senior/Medicare presence.
Strengthening UnitedHealth Group's position in the fast-growing Southwest and broadening senior health capabilities in a region attractive to retirees.
Leading regional franchise in a high-growth retiree market. Expected accretion of about $0.04 per share in the first year; financial synergies of up to $30 million; termination fee about $85 million. UnitedHealthcare
Advisory firms were not disclosed for this transaction.