Matria Healthcare, Marietta, Ga., agreed to acquire rival disease-management vendor CorSolutions Medical, Rosemont, Ill., for $445 million in cash. The deal is expected to close by year-end or shortly thereafter, pending regulatory approval. Founded in 1994, privately held CorSolutions provides disease-management services to several large health plans and employers nationwide. Matria, a publicly traded provider of health-enhancement services, said the addition of CorSolutions will sharpen its focus on disease management. The company said it plans to move next year to sell off a number of non-core operations, such as its medical-device and German mail-order supply businesses. Matria said it expects the acquisition to boost earnings next year and to add "significantly" to its bottom line in 2007 and beyond. CorSolutions is expected to post operating earnings of $32 million on revenue of $120 million in 2005 and to achieve revenue and profit growth of at least 20% in 2006. Matria earned $27.1 million, or $1.74 per share, on revenue of $294.4 million in 2004. -- by Laura B. Benko
Matria to acquire disease-management firm
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