HealthSpring Acquries 390K Medicare Members From Bravo Health

HeathSpring, Inc. (NYSE: HS) has announced its acquisition of 390K Medicare and PDP members from Bravo Health with licenses to sell products in 43 states, according to Wedbush, which believes this Bravo deal to be the largest in the company's pipeline.

The deal is expected to be $0.45-0.55 accretive to 2011 EPS representing an 18% upside to current estimates of $2.76 and first year EBITDA synergies are expected in the $15M range.

Transaction costs are expected to be $0.20 dilutive to 2010 earnings, is currently awaiting state approvals, and is expected to close by year end.

Wedbush remains Neutral with a price target of $22.

HealthSpring, Inc. closed yesterday at $19.26.

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