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COVENTRY HEALTH CARE AGREES TO ACQUIRE VISTA HEALTHPLANS
Sunrise health plan to become Florida base for national managed care company
Bethesda, Md. (July 9, 2007) — Coventry Health Care, Inc. today announced that
it has signed a definitive agreement to acquire privately-owned Florida Health
Plan Administrators, LLC, owner of Vista Healthplans. The Sunrise-based
diversified health plan serves approximately 295,000 members.
“Coventry is delighted to enter the Florida market and expand its national
footprint,” said Thomas P. McDonough, president of Coventry. “Vista has
established itself as a strong local-based health plan serving commercial
employers, individuals and governmental agencies. Coventry and the local Vista
management team will team up to bring Coventry’s enhanced technology, its full
suite of products and its financial strength to the Florida marketplace,
creating a strong local presence with national stability. Coventry’s balance
sheet, with over $6 billion in assets, will stand behind Vista.”
Coventry will acquire Vista Healthplans for $685.0 million in an all-cash
transaction expected to close in 90 to 180 days,subject to closing conditions,
regulatory and other customary approvals. Coventry will continue operations
from Vista’s Sunrise headquarters and will tap the local expertise of the Vista
management team. Vista will operate as a wholly-owned subsidiary of publicly
traded Coventry Health Care, Inc.
“This was an excellent decision for Vista’s major stakeholders – our employees,
providers, customers and members,” said Steven M. Scott, M.D., chief executive
officer of Vista. “The transaction will allow Vista to offer additional
products in the marketplace, increasing our competitive strength and ability to
gain new customers.”
This press release contains forward-looking statements made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are defined as statements that are not historical
facts and include those statements relating to future events or future
financial performance. Actual performance may be significantly impacted by
certain risks and uncertainties, including those described in Coventry’s Annual
Report on Form 10-K for the year ended December 31, 2006 and Coventry’s Form
10-Q for the quarter ended March 31, 2007. Coventry undertakes no obligation to
update or revise any forward-looking statements.
Coventry Health Care (www.cvty.com) is a
diversified national managed healthcare company based in Bethesda, Maryland,
operating health plans, insurance companies, network rental and workers’
compensation services companies. Through its Commercial Business, Individual
Consumer & Government Business, and Specialty Business Divisions, Coventry
provides a full range of risk and fee-based managed care products and services
to a broad cross section of individuals, employer and government-funded groups,
government agencies, and other insurance carriers and administrators.
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