GuideWell, the parent company of Blue Cross and Blue Shield of Florida, will acquire Triple-S Management, a health services firm based in Puerto Rico.
Once the deal is finalized, Triple-S will operate as a GuideWell subsidiary under its current branding, according to an announcement. GuideWell will purchase all of the outstanding common stock in Triple-S at $36 per share in cash, which equates to about 40% of the company's 90-day weighted average trading price.
The boards of both companies have unanimously approved the acquisition, according to the announcement.
Triple-S serves more than 1 million people across Puerto Rico, nearly one-third of the island's total population, the companies said.
“The Transaction expands GuideWell’s core insurance operations and positions Florida Blue and Triple-S Management for significant growth and meaningful value creation for the customers and communities we serve,” said Pat Geraghty, president and CEO of GuideWell and Florida Blue.
“Florida Blue and Triple-S Management are both recognized for their high-quality, affordable health care and their actions deeply rooted in supporting community well-being. With Puerto Rico’s outlook strengthening, and Florida experiencing fast-paced growth, especially in its Puerto Rican and Hispanic populations, this is a natural next step," Geraghty said.
GuideWell expects collaboration with Triple-S to benefit the Florida Blue brand as well, allowing it to better serve Puerto Rican and Spanish-speaking members in the state. GuideWell also said the deal should be immediately accretive, as the companies combined will be able to compete more effectively in the Medicaid market.
The parties expect the acquisition to close in the first half of 2022, pending regulatory approval.
“Uniting our mission-driven, community-focused teams is a great outcome for our companies, as well as for Puerto Rico and Florida, and our shareholders,” said Roberto Garcia-Rodriguez, president and CEO of Triple-S Management, in a statement.
“We have long admired Florida Blue’s locally focused approach to care, and we share their respect for the uniqueness of every community served. By partnering with a strong organization that shares our mission and approach, we will be well positioned to achieve our strategic goals, expand access and improve health care outcomes for all our members. The Transaction is also clearly in the best interests of our shareholders, given the strategic fit, the significant premium to our current share price and resulting shareholder liquidity," Garcia-Rodriguez said.