Updated to include Moody's rating downgrade, Fitch and S&P actions.
NEW YORK ( TheStreet) -- Obamacare has its first major merger, after health care giant WellPoint (WLP) said on Monday that it will buy Amerigroup (AGP), a managed health care company with 4.5 million customers of state sponsored health care programs, for $4.9 billion, or $92 a share in cash.
The deal, which comes at a 43% premium to Amerigroup's Friday closing share price, is the first major health care sector merger since President Obama's Affordable Health Care Act was narrowly upheld by the Supreme Court in late June and adds to a trend of consolidation within the industry.
For WellPoint, which ended 2011 with 65-plus million health care customers including those under Blue Cross and Blue Shield private plans that it is a licensee of, Amerigroup's mostly Medicaid customers will help the company push into state sponsored health care plans that are most impacted by the health care act and court ruling.
Forget the SCOTUS decision, the market has already changed for healthcare stocks
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