Centene Corporation Closes Acquisition of Medicaid Assets of SummaCare, Inc.
May 10 2005 - 6:00AM
Business Wire
Centene Corporation (NYSE:CNC) announced today that it has closed
its acquisition of the Medicaid assets of SummaCare, Inc., a wholly
owned subsidiary of Summa Health System, based in Akron, Ohio. The
transaction is effective as of May 1, 2005. Under the terms of the
agreement, Centene paid approximately $30 million for the Medicaid
assets of SummaCare, Inc., and long-term provider contracts with
Summa Health System. The consideration consisted of approximately
$21 million in cash and 318,735 shares of Centene's common stock.
Pursuant to a registration rights agreement, Centene is filing with
the SEC a registration statement on Form S-3 for the resale of all
shares of common stock issued in the acquisition. At closing, the
membership was 37,500, which was consistent with Centene's
expectations. Michael F. Neidorff, Chairman and Chief Executive
Officer of Centene, said, "We are pleased to close this acquisition
and expand our operations in Ohio. Consistent with our core
philosophy that quality healthcare is best delivered locally, we
have established an office in Akron through our Buckeye Community
Health Plan subsidiary to serve the needs of the community. We look
forward to working with the provider community and the state of
Ohio to deliver quality care to our Medicaid recipients." About
Centene Corporation Centene Corporation provides multi-line managed
care programs and related services to individuals receiving
benefits under Medicaid, including Supplemental Security Income
(SSI) and the State Children's Health Insurance Program (SCHIP).
The Company operates health plans in Indiana, Kansas, Missouri, New
Jersey, Ohio, Texas and Wisconsin. In addition, the Company
contracts with other healthcare organizations to provide specialty
services including behavioral health, nurse triage and treatment
compliance. Information regarding Centene is available via the
Internet at www.centene.com.
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