Health insurer Humana Inc (HUM.N) agreed to acquire privately held MD Care for an undisclosed amount on Friday to expand its Medicare plans for the elderly in California. Humana, one of the largest Medicare plan providers, said it expects the deal to close in late 2011 and the acquisition is not expected to materially impact its 2011 earnings outlook. MD Care, whose Medicare Advantage plan has about 15,000 members in Southern California, recorded revenue of $155 million in 2010, Humana said. "We view the acquisition favorably as it provides Humana with another opportunity to expand its Medicare Advantage footprint, which should help it continue to leverage its infrastructure," Oppenheimer & Co analyst Michael Wiederhorn wrote in a note.
Humana Inc. (Humana) is a health and supplemental benefits company. Shares of HUM fell by 0.21% or $-0.16/share to $76.11. In the past year, the shares have traded as low as $49.00 and as high as $84.32. On average, 2051030 shares of HUM exchange hands on a given day and today's volume is recorded at 853739.
