Humana has signed a definitive agreement to buy insurer KMG America Corp. for about $187.7 million in cash and debt.
Under the terms of the deal, the Louisville, Ky., health plan will buy KMG America at a price of $6.20 in cash for each outstanding share, and will take on $50 million in debt.
KMG America, Minnetonka, Minn., provides life and health insurance products and services to 1.1 million group and individual members, as well as third-party claims administration and medical-management services for 131,000 self-insured members. The company had 2006 revenue of about $181 million, Humana said.
KMGs capabilities in voluntary products will complement our major medical offerings in both the employer group and individual product lines, said Michael McCallister, Humanas president and chief executive officer, in a written statement.
The transaction is expected to be completed in the first quarter of 2008 and is subject to approval from the South Carolina Department of Insurance and federal regulators. -- by Rebecca Vesely
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