WellPoint to buy Amerigroup for $4.5B
WellPoint says it will pay $92 for each Amerigroup share. That's a 43 percent premium to the company's closing price Friday of $64.34.
Amerigroup currently has about 48.5 million outstanding shares, according to FactSet.
The companies put the total value of the deal at approximately $4.9 billion.
WellPoint is based in Indianapolis, while Amerigroup is based in Virginia Beach, Va.
The transaction is expected to close in 2013's first quarter. It still needs certain regulatory approvals and the approval of Amerigroup stockholders.
The deal is expected to add to WellPoint's 2013 earnings per share and add more than $1 per share by 2015.
Popular on MoneyWatch
- Reverse cell phone lookup service is free and simple
- Amy's Baking Company could face legal 'nightmare'
- When it comes to vacations, the U.S. stinks 117 Comments
- 4 Things Not to Buy at Costco
- Top 10 professional life coaching myths
- TGI Fridays nailed for doctoring booze
- Amy's Baking Company: Post-meltdown PR campaign
- Online learning gets fresh look from a heavyweight