To increase its presence in Central Oregon and expand into government segments
PacificSource Health Plans has agreed to acquire Clear One Health Plans, to increase its presence in Central Oregon, expand into government segments (medicare and medicaid), and improve its ability to collaborate with providers to serve those patients.
Under the terms of the merger agreement, Clear One’s shareholders will receive $26 per share in cash, on closing of the transaction. The transaction has a total equity value of approximately $46m. On the close of transaction, Clear One will become a wholly owned subsidiary of PacificSource Health Plans.
The board of directors of both companies approved the transaction and Clear One entered into the merger agreement following recommendation by a special committee comprised of independent directors.
The company claims that the combination of business capabilities and expertise will enhance financial strength and increases growth opportunities to better serve both government and commercial markets.
Ken Provencher, president and CEO of PacificSource, said: “Clear One’s strong balance sheet, regional footprint, and expertise in government programs will help us build on PacificSource’s strength in the commercial insurance market.
“The combined strengths of two independent regional health insurers will provide more people with affordable, quality healthcare and personal service at the local level more efficiently and cost-effectively, and all our customers should benefit from that.”
The closing of the transaction is subject to certain terms and conditions customary for transactions of this type, including regulatory and shareholder approvals.