Summary
Centene Corporation (CNC) filed a Form 8-K on December 7, 2004, reporting the completion of its acquisition of FirstGuard Health Plan, Inc. and FirstGuard, Inc. for approximately $93 million in cash. This acquisition adds approximately 136,000 members across Kansas and Missouri to Centene's existing member base. The transaction was partially funded through $40 million borrowed under the company's revolving credit facility.
Key Highlights
- 1Completion of the acquisition of FirstGuard Health Plan, Inc. and FirstGuard, Inc. on December 6, 2004.
- 2The acquisition adds approximately 136,000 members in Kansas and Missouri.
- 3The purchase price for FirstGuard was approximately $93 million in cash.
- 4$16.7 million of the purchase price is held in escrow for 18 months.
- 5The acquisition was funded by existing cash/investments and $40 million drawn from the company's revolving credit facility.
- 6The company entered into a new direct financial obligation of $40 million under its revolving credit agreement.
Frequently Asked Questions
The primary purpose of this Form 8-K filing was to announce the completion of Centene Corporation's acquisition of FirstGuard Health Plan, Inc. and FirstGuard, Inc.
Centene acquired approximately 136,000 new members through the acquisition of FirstGuard, which serves members in Kansas and Missouri.
The acquisition was financed through a combination of Centene's unregulated cash and investments, along with $40 million borrowed under its revolving credit facility.
The financial statements of the acquired business and pro forma financial information will be filed separately on a Form 8-K/A, with a deadline of not later than 75 days after December 6, 2004.