Sierra Health Services acquired by UnitedHealth for $43.50 per share

By Lisa Kerner

Charlotte, N.C., Feb. 26 - UnitedHealth Group, Inc. completed its $2.6 billion acquisition of Sierra Health Services, Inc. under an agreement first announced in March 2007.

The agreement calls for Sierra stockholders to receive $43.50 in cash for each share of Sierra common stock.

As a condition of the U.S. Department of Justice's approval, UnitedHealth will divest its individual SecureHorizons Medicare Advantage health maintenance organization plans in certain counties. Some 25,000 affected members will transition to Humana Inc., according to a UnitedHealth news release.

Group SecureHorizons Medicare Advantage plans will continue to be operated by UnitedHealth.

Sierra will retain its Medicare Advantage HMO plans in Nevada offered under the Senior Dimensions brand.

Also, under an agreement with the Nevada attorney general, UnitedHealth will make $15 million in charitable contributions over the next five years to benefit health care consumers and programs in Nevada.

It was previously reported that Sierra shareholders overwhelmingly approved the company's acquisition in June 2007.

Sierra is a Las Vegas provider of health benefits and services. UnitedHealth is a diversified health company located in Minneapolis.

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