WellPoint to Buy Amerigroup for $4.9 Billion; Medicaid Capabilities Expected to Expand

WellPoint Inc. will acquire Amerigroup Corp. under a definitive agreement reached by the two companies, they announced July 9.

Indianapolis-based WellPoint will pay $92 per share in cash to acquire all of Virginia Beach, Va.-based Amerigroup for a transactional value of about $4.9 billion, the companies said in a release.

The acquisition advances the companies’ capabilities to more effectively and efficiently serve the growing Medicaid population, including expansion of the number of dual eligibles (people in both Medicaid and Medicare), Medicaid seniors and persons with disabilities (SPD), and long-term services and support markets (LTSS), the companies said.

WellPoint is one ...