Anthem to acquire InnovaCare Health's Puerto Rico-based subsidiaries

Anthem Inc. agreed to acquire InnovaCare Health LP's Puerto Rico-based subsidiaries, including MMM Holdings LLC and its Medicare Advantage plan MMM Healthcare LLC, as well as its affiliated companies and Medicaid plan.

Financial terms of the transaction were not disclosed.

The acquisition is expected to close by the second quarter, subject to approval by the Commonwealth of Puerto Rico regulatory authorities, standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act.

The company's 2021 EPS guidance remains unchanged as a result of the deal.

MMM Holdings has over 267,000 Medicare Advantage members and over 305,000 Medicaid members. The group provides a network of specialized clinics and wholly owned independent physician associations, Castellana Physicians Services and PHM, as well as independent individual practice associations. Together, the MMM Holdings network includes more than 10,000 healthcare providers and more than a dozen offices across Puerto Rico.

White & Case LLP and Faegre Drinker Biddle & Reath LLP are serving as Anthem's legal advisers. Credit Suisse is acting as lead financial adviser to InnovaCare, while J.P. Morgan Securities LLC is serving as financial adviser. Kirkland & Ellis LLP and Epstein Becker & Green PC are acting as legal advisers for InnovaCare.