Anthem (ANTM) Inks Deal To Acquire Beacon Health Options
Zacks Investment Research | Jun 06, 2019 10:56PM ET
Anthem, Inc. (NYSE:ANTM) has agreed to purchase Beacon Health Options, the largest independent behavioral health organization in the country. The buyout is expected to close in the fourth quarter of 2019, subject to closing conditions. However, financial terms of the buyout were not disclosed.
The transaction perfectly complements Anthem’s solid strategy to foray into health services and provide advanced integrated services and care delivery models that dispense tailor-made care for patients, who suffer chronic conditions.
Notably, Beacon, that presently caters to more than 36 million individuals across all 50 states, is the perfect partner to help Anthem boost its capabilities, which in turn, would enable it to cater to the evolving needs of state partners, health plans and employer groups.
The combination of Anthems’ current behavioral health business with Beacon’s successful model will enable the companies to enhance their care and improve health outcomes of patients. This is supported by a robust portfolio of specialized products, better clinical expertise, improved analytics and health data plus a wider range of networks and relationships. This unique integration will also lead to one of the most comprehensive behavioral health networks.
On closure of this deal, Beacon will work as a team included in Anthem’s Diversified Business Group. This strategic move is expected to be marginally accretive to the company’s adjusted earnings in 2020.
Anthem has been actively collaborating and acquiring companies for enhancing its expansion process over the past many years. Acquisitions have always helped the company drive its Medicare Advantage growth as well as add to its business portfolio. The company has also launched successful partnerships with various organizations recently and it expects its collaboration model to accelerate growth. We expect all these initiatives to continue to augur well for the company’s growth.
Shares of this Zacks Rank #3 (Hold) company have rallied 21.5% in a year’s time against its Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.