NEW YORK, Aug. 14, 2006 (PRIMEZONE) -- Aveta Inc., one of the leading companies focusing on Medicare Advantage and a leader in addressing the healthcare needs of the chronically ill, announced today that it has completed its acquisition of PMC Medicare Choice (PMC), a Medicare Advantage company and healthcare plan providing benefits in the 78 municipalities in Puerto Rico.
As previously announced, the cash acquisition purchase price at closing was approximately $185 million, including fees, and an additional earn-out provision provides for the potential payment of an additional $68 million which may be earned and payable over the next 18 months based on achievement of combined profitability targets for MMM and PMC. As of closing, PMC had approximately 70,000 members in its plans.
The acquisition, which has received all necessary local and federal regulatory approvals, creates Puerto Rico's leading provider of Medicare Advantage services through the combination of PMC and Aveta subsidiary, Medicare y Mucho Mas (MMM). The combined companies serve approximately 200,000 Medicare beneficiaries across Puerto Rico.
Aveta's integration team has already begun planning how to best combine the operations and unique strengths of the two companies. Daniel E. Straus, Chief Executive Officer of Aveta, commented: "Our aim is to be the leading Medicare Advantage company in Puerto Rico, and to further improve healthcare delivery by partnering with providers to enhance the quality of life of Medicare beneficiaries, particularly the chronically ill. MMM was the first company in Puerto Rico to offer a Medicare Advantage chronic special needs plan and we will continue building on that expertise."
Member plans and benefits currently offered by both MMM and PMC will remain the same during 2006. Marketing of new plans and benefits for 2007 will begin in the last quarter of 2006.
About Aveta Inc.
Aveta is one of the largest companies focusing on Medicare Advantage and a leader in addressing the unique healthcare needs of the chronically ill. Caring for over 220,000 Medicare beneficiaries, Aveta is the 3rd largest for-profit Medicare Advantage enterprise. Aveta has a successful track record of managing care for seniors achieved through its core competency of community medical management. Aveta is headquartered in Fort Lee, New Jersey and currently has operating subsidiaries in Southern California, Puerto Rico, and Illinois.