Sanus Corp. Health Systems, the New York-based managed-care subsidiary of New York Life Insurance Co., has agreed in principle to acquire the Ethix Corp., a managed-care company with headquarters in Portland, Ore.
Terms of the deal weren't disclosed, but a press release said Stephen Gregg, Ethix's founder, chairman and chief executive officer, would be leaving to pursue other interests.
Ethix operates health plans in 12 states and provides utilization-review services for 1 million people. As of January, the company had revenues of $43 million.
Mr. Gregg controls 61% of the company, while New York Life, Massachusetts Mutual Life Insurance Co. and Hartford Life Insurance Co. each has a 13% stake in Ethix. The companies did not reveal how the acquisition would alter controlling interests.
Seymour Sternberg, executive vice president of New York Life, said the acquisition enhances the company's position as a national managed-care provider.
Together, Sanus and Ethix will provide services to 2.2 million enrollees in HMO, PPO and indemnity products. After the acquisition, New York/Sanus will own managed-care networks in 19 states.