NEW YORK, May 12, 2006 (PRIMEZONE) -- Aveta Inc., one of the leading companies focusing on Medicare Advantage and a leader in addressing the healthcare needs of the chronically ill, has signed a definitive stock purchase agreement to acquire PMC Medicare Choice (PMC), a Medicare Advantage company and healthcare plan providing benefits in 78 municipalities in Puerto Rico.
The total cash acquisition purchase price for PMC and its related companies is estimated to be $250 million and is subject to certain closing conditions. Approximately $185 million of the estimated purchase price will be payable at closing and the balance will be earned and payable over a period up to approximately 24 months after closing based on the achievement of specific performance targets for the combined Puerto Rico healthcare operations of PMC and Aveta. Aveta has secured financing commitments in connection with the acquisition, which are also subject to certain conditions. Additional terms of the transaction were not disclosed. The acquisition, which is contingent on approval by regulators, is expected to close within approximately 60 to 90 days. PMC Medicare Choice is committed to have over 55,000 Medicare beneficiaries at the time of closing.
Aveta is currently Puerto Rico's leading provider of Medicare Advantage services through its subsidiary, Medicare y Mucho Mas (MMM), which serves approximately 120,000 Medicare beneficiaries in all 78 of Puerto Rico's municipalities.
"We believe the combination of MMM and PMC Medicare Choice under the Aveta group of companies is a big step forward in our commitment to being the premier provider of Medicare Advantage services in the markets we serve," said Timothy J.O'Donnell, President and Chief Executive Officer of Aveta. "PMC enrollees will benefit from Aveta's strength in community medical management and its innovative approach to integrating both healthcare prevention and treatment for seniors at the local level, and MMM will benefit from the strong provider relationships and talent provided by PMC."
"PMC Medicare Choice is proud of what we have accomplished and respects Aveta for recognizing our success and the strong business that we have built," stated Roberto Bengoa, President of PMC. "We are confident that the combination of PMC and MMM, led by the experience and resources of Aveta, will be very beneficial to our Medicare members and medical providers in Puerto Rico."
About Aveta Inc.
Aveta is one of the largest companies focusing on Medicare Advantage and a leader in addressing the unique healthcare needs of the chronically ill. Caring for over 140,000 Medicare beneficiaries, Aveta is the 5th largest for-profit Medicare Advantage enterprise, and operates more Chronic Special Needs Plans than any other company. Aveta has a successful track record of managing care for seniors achieved through its core competency of community medical management. Aveta is headquartered in Fort Lee, New Jersey and currently has operating subsidiaries in Southern California, Puerto Rico, and Illinois.