Metropolitan is a growing health care organization that provides comprehensive health care services for Medicare Advantage members and other patients in Florida.
Metropolitan Health Networks, Inc. Completes Acquisition of Continucare Corporation ? Transaction Establishes New Foundation for Future Expansion
With Over 68,000 Medicare Advantage and Medicaid Customers, Merger Makes Company the Largest Provider Service Network in Florida and One of the Largest in the U.S.
Metropolitan Health Networks, Inc. (AMEX: MDF) (?Metropolitan?) and Continucare Corporation announced jointly the successful completion of the acquisition of Continucare by Metropolitan. As a result of the acquisition, Metropolitan is the largest provider service network serving the Medicare and Medicaid eligible population in Florida, and one of the largest in the United States.
Metropolitan now owns and operates 32 primary care medical practices and manages a network of more than 250 contracted, independent, primary care practices across 18 Florida counties, including the Daytona, Miami, Ft. Lauderdale, West Palm Beach, and Tampa metropolitan areas. Metropolitan serves over 68,000 Medicare Advantage and Medicaid customers. Combined proforma revenues for the two companies for the six months ended June 30, 2011 were $348 million.
Metropolitan now serves Medicare, Medicaid, and commercial customers and has Medicare Advantage contracts with Humana, Inc., United Healthcare, Coventry Health Care, and Wellcare Health Plans, Inc. In addition, Metropolitan has contracts with most Medicaid insurers operating in Florida.
Metropolitan paid an aggregate of $403 million in cash and issued 2.5 million shares of its common stock to Continucare's stockholders and option holders in consideration for their shares of Continucare common stock and options to purchase shares of Continucare common stock. Metropolitan expects that the transaction will be accretive to earnings per share in 2012.
Metropolitan used a combination of its and Continucare's existing cash resources, together with an aggregate of $315 million of borrowings under the First Lien Credit Agreement and the Second Lien Credit Agreement, to pay the cash merger consideration at the closing of the Merger. Immediately after the effective time of the Merger, the former shareholders and option holders of Continucare owned approximately 5.8% of Metropolitan's outstanding common stock.
To learn more about Metropolitan Health Networks, Inc. please visit its website at www.metcare.com
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