is buying government-sponsored health-care provider
in a deal the companies are valuing at $17.3 billion.
Centene is buying WellCare in a cash and stock deal for $305.39 a share, the companies said. WellCare investors, for each share of the company owned, will get $120 in cash and 3.38 common shares of Centene.
The companies said that, together, they will have about 22 million members nationwide and about $97 billion in revenue in 2019 on a pro forma basis. Through the deal, Centene will be able to grow its Medicaid offerings, the companies said. WellCare also has a Medicare platform.
Two of WellCare’s board members will join the combined company’s board, which will have 11 members. Centene Chief Executive Michael Neidorff will still run Centene. WellCare CEO Ken Burdick and Chief Financial Officer Drew Asher will also join Centene.
Shares of WellCare rose 20% in premarket trading.
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