BETHESDA, Md. (June 30, 2010) - Coventry Health Care, Inc. (NYSE: CVH) announced today that it has signed a definitive agreement to acquire MHP, Inc. and its subsidiaries ("Mercy Health Plans"), currently whollyowned by Sisters of Mercy Health System. Mercy Health Plans is a diversified health plan with approximately 90,000 commercial risk members, 60,000 commercial self-funded members, and 30,000 Medicare Advantage Coordinated Care members throughout Missouri and northwest Arkansas. Upon completion of this acquisition, Coventry will serve more than 1.2 million members in its six-state Midwest region. Coventry is also entering into a long-term provider and customer relationship with Sisters of Mercy Health System and its affiliates as part of the transaction.
"I am pleased to announce this transaction which strengthens Coventry's presence in the Missouri market while also expanding our relationship with a premier multi-state health system, Sisters of Mercy Health System," said Allen F. Wise, chief executive officer of Coventry. "This acquisition reaffirms Coventry's commitment to broadening its health plan footprint and is consistent with our focus on our seven core businesses. Mercy Health Plans' businesses are ones that we understand well and we are confident that they will increase shareholder value over the long term."
The transaction is expected to close in the next 90 to 120 days subject to customary closing conditions and regulatory and other approvals and is expected to be slightly accretive to earnings in 2011. Financial terms of the transaction were not disclosed.
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are defined as statements that are not historical facts and include those statements relating to future events or future financial performance. Actual performance may be significantly impacted by certain risks and uncertainties including those described in Coventry's Annual Report on Form 10-K for the year ended December 31, 2009 and Coventry's Form 10-Q forthe quarter ended March 31, 2010. Coventry undertakes no obligation to update or revise any forward-looking statements.