This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Humana Enters Into Agreement To Acquire Metropolitan Health Networks, Inc.

Humana Inc. (NYSE: HUM) (“Humana”) and Metropolitan Health Networks, Inc. (NYSE: MDF) (“Metropolitan”) today announced that they have entered into a definitive agreement pursuant to which Humana will acquire Metropolitan in a transaction valued at approximately $850 million plus transaction costs. Headquartered in Boca Raton, Florida, Metropolitan is a Medical Services Organization that provides and coordinates medical care for approximately 87,500 Medicare Advantage, Medicaid, and other beneficiaries, primarily in Florida utilizing a primary care-centric business model.

Under the terms of the agreement, which has been approved by both companies’ boards of directors, Metropolitan stockholders will receive $11.25 per share in cash from Humana for each Metropolitan share. Humana will also repay all of Metropolitan’s outstanding debt.

“We believe firmly in Metropolitan’s proven integrated-care model and its demonstrated scalability to new markets," said Bruce Broussard, Humana’s President. "With this strategic acquisition, Humana will further expand our capabilities and help to simplify and improve the overall health care experience for our members.”

“In addition to providing significant value to our shareholders, today’s announcement is an important next step for the very talented and determined team of individuals in our wholly owned business units, MetCare and Continucare,” said Michael Earley, Chairman and Chief Executive Officer of Metropolitan Health Networks, Inc. “As a partner to Humana for over 13 years, Metropolitan has experienced incredible growth and success in providing health care solutions for customers in the Medicare and Medicaid markets. Joining forces with a national leading health care company such as Humana will provide us with the resources to more rapidly expand while continuing to provide the highest quality care to our patients,” Earley concluded.

Metropolitan’s integrated care delivery systems include 35 state-of-the-art primary care medical centers and a robust network of affiliated physicians serving mainly Humana members.

The transaction is subject to Metropolitan shareholder approval and customary closing conditions including expiration of the Hart-Scott-Rodino anti-trust waiting period and is expected to close by the end of the first quarter of 2013. Humana expects to finance this transaction with a combination of cash and debt. Humana anticipates the transaction to be modestly accretive to its earnings for the year ending December 31, 2013.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs