Anthem Completes Acquisition of Blue Cross & Blue Shield of Colorado and Nevada

Strategic Insights -

Anthem Inc., a leading health benefits company, has successfully completed its acquisition of Blue Cross & Blue Shield of Colorado and Nevada, marking a significant milestone in the company's expansion strategy. The acquisition, which received approval from Colorado Insurance Commissioner William Kirven on November 4, 1999, has enabled Anthem to strengthen its presence in the western United States. As part of the deal, the acquired companies, now known as Anthem Blue Cross & Blue Shield, will continue to operate from the current facility in Denver, serving over 400,000 customers in Colorado and 75,000 customers in Nevada.

Key Takeaways:

  • Anthem has acquired Blue Cross & Blue Shield of Colorado and Nevada for an undisclosed amount.
  • The acquisition includes the issuance of $155 million in stock by the Blues, which Anthem will buy.
  • Anthem has also provided the Blues with $10 million in services and a $50 million surplus note.
  • The acquired companies will now be known as Anthem Blue Cross & Blue Shield and will continue to operate from Denver.
  • Anthem has established a new regional business unit, Anthem West, to oversee its health care management and insurance business in the western United States.
  • Anthem plans to close the acquisition of Blue Cross & Blue Shield of New Hampshire for $120 million, with a foundation worth about $80 million to be established as part of the deal.
  • Anthem also plans to buy the Maine Blues for $120 million, with the transaction expected to close sometime next summer.

Statistics:

  • Anthem has acquired Blue Cross & Blue Shield of Colorado and Nevada, serving over 400,000 customers in Colorado and 75,000 customers in Nevada.
  • The acquisition includes the issuance of $155 million in stock by the Blues, which Anthem will buy.
  • Anthem has provided the Blues with $10 million in services and a $50 million surplus note.
  • The acquisition of Blue Cross & Blue Shield of New Hampshire is valued at $120 million, with a foundation worth about $80 million to be established as part of the deal.
  • Anthem plans to close the acquisition of the Maine Blues for $120 million.

Sources:

  • BestWire, Nov. 10, 1999
  • BestWire, Oct. 27, 1999
  • COMTEX (http://www.comtexnews.com)