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Anthem to enter a healthy deal with Beacon
Posted on Friday, 07 June 2019 14:26
Anthem is acquiring US-based Beacon Health Options from Bain Capital Private Equity and Diamond Castle Holdings for an undisclosed sum.

The acquisition is due to complete in the fourth quarter of 2019, subject to closing conditions and regulatory approvals, as well as the expiration of waiting periods under US antitrust laws.

Headquartered in Massachusetts and with 4,700 employees, Beacon is billed as the largest independently held behavioural health organisation in the US.

It provides risk-based programmes to over 36.00 million people across 50 states, as well as treatment plans for patients suffering with mental health and substance abuse issues, including autism and other complex conditions.

Through the acquisition of Beacon, Anthem will be able to expand its existing behavioural health business nationwide.

Furthermore, the purchase will strengthen the buyer’s portfolio via the addition of specialised products, clinical expertise, as well as analytics and specialised data.

A deal also helps create a comprehensive behavioural network that provides accessible and affordable care for customers across the US.

Gail Boudreaux, chief executive of Anthem, said: “With an extensive track record in behavioural health, Beacon fits well with our strategy to better manage the needs of populations with chronic and complex conditions, and deliver integrated whole health solutions.”

The transaction is also expected to increase the buyer’s adjusted earnings in 2020.

Based in Indiana, Anthem is a health insurance company which provides a range of health care plans across the US.

Its offerings include preferred provider organisation and health maintenance organisation insurance programmes, dental and other hybrid and speciality products.

For the three months ended 31st March 2019, the group posted revenue of USD 24.39 billion, up from USD 22.34 billion in the preceding 12 months.

There have been 917 deals targeting health care and social assistance providers announced worldwide since the beginning of 2019, according to Zephyr, the M&A database published by Bureau Van Dijk.

In the only deal to surpass the USD 10.00 billion-barrier, Centene, through its acquisition vehicle Wellington Merger Sub II, agreed to acquire US-based WellCare Health Plans for USD 17.30 billion.

© Zephus Ltd