Universal American Trading Lower After Announcing APS Healthcare Acquisition

Universal American

is getting hit hard today after the company announced that it will acquire APS Healthcare for $227.5 million. The purchase price consists of $147.5 million in cash, and $80 million in UAM stock, plus up to $50 million in potential performance based consideration. Universal American CEO, Richard Barasch said: “We are very excited about the APS Healthcare transaction. Companies who demonstrate the ability to improve cost and quality metrics, especially in government programs will thrive in the rapidly changing healthcare environment.” Universal American is currently trading at $11.47, down $2.07 or 15.29%.