PacificSource Health Plans announced it is acquiring insurer Clear One in a deal with a total equity value of about $46 million, according to Pacific Source.
Officials from both companies said the deal will enhance the health plans' financial strength and create possible growth opportunities in the government and commercial health plan markets. With the deal, Pacific Source—a Eugene, OR-based nonprofit insurer with 182,000 members in the group and individual markets—will increase its presence in Central Oregon and expand into Medicare and Medicaid, as well as "improve its ability to collaborate with providers to serve those patients," according to the insurer.
Clear One Health Plans has more than 145 employees and serves 40,000 residents throughout Oregon and Montana in Medicare Advantage, commercial, and individual plans, according to Clear One.
As part of the agreement, Clear One's shareholders will receive $26 per share in cash upon a successful close of the transaction. PacificSource said the price "represents a premium of 167% to the closing price on December 29, 2009, of $9.75."
The boards of directors of both companies unanimously approved the deal.
"The combined strengths of two independent regional health insurers will provide more people with affordable, quality healthcare, and personal service at the local level more efficiently and cost-effectively, and all our customers should benefit from that," said Ken Provencher, president and CEO of PacificSource.
The two insurers hope to complete the transaction during the latter part of the first quarter of 2010. The transaction is subject to certain regulations, such as regulatory approval by the Oregon Insurance Division, the Centers for Medicare & Medicaid Services, and the Oregon Division of Medical Assistance Programs.