Munich Re has agreed to acquire Windsor Health Group for $125m in cash, to strengthen its position the US Medicare market through its brand Munich Health.
Munich Re will acquire 100% of Windsor from a group of investors, and it will finance the purchase price from its existing resources.
Upon completion of the acquisition, the complete operations of the Windsor will lie within the Munich Health North America.
Windsor operates government-sponsored health plans through its Windsor Health Plan, a subsidiary, which provides specialty managed healthcare services in the senior segment to more than 75,000 members in Alabama, Arkansas, Mississippi, South Carolina and Tennessee.
Windsor Health Plan president and CEO Michael Bailey said, with the additional resources and infrastructure available through Sterling and Munich Re, the firm will have a much stronger platform to support members and providers and drive long-term growth.
However, the completion of the transaction is subject to regulatory approval, and is expected to be completed at the end of the fourth quarter of 2010.