Centene Corp. CNC, +0.62% stated Thursday it has agreed to procure health internet Inc. HNT, +1.47% in a cash and stock deal valued at about $ 6.8 billion, together with the belief of $ 500 million of debt. the combination will create a well being care firm with more than 10 million contributors across the country and 2016 proforma premium revenues of about $ 37 billion, Centene mentioned in a remark. health web shareholders will receive zero.622 shares of Centene and $ 28.25 in cash for each and every well being internet inventory, equal to a top rate of about 21% over health web’s closing price on July 1. The deal if expected to raise Centene’s per-share revenue with the aid of 20% in the first yr after closing. “nowadays’s announcement is a big subsequent step in our way to increase scale and power geographic and product diversification,” Centene Chief executive Michael Neidorff mentioned in the statement. The deal is predicted to generate annual synergies of about $ one hundred fifty million by the second 12 months and to close in early 2016. well being web shares had been trading up 5.6% in premarket alternate, whereas Centene was indicating higher in thin volumes.
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