Investopedia: WellPoint Buys More Medicaid Exposure
Funny how a Supreme Court ruling can change strategic priorities. Not
all that long after management stated that it had no plans to expand its
Medicaid business, WellPoint (NYSE:WLP) announced Monday that it was acquiring Medicaid managed care company Amerigroup (NYSE:AGP)
in a nearly $5 billion deal. Not only does this deal look as though it
can be very accretive over time (even with a 43% premium), but it
arguably represents a best-of-breed buyout in a sector that could soon
see more activity.