UPDATE: WellPoint to Acquire 1-800 CONTACTS; Sees FY EPS of $7.80 Including Items
WellPoint, Inc. (NYSE: WLP), one of the nation's largest health benefits companies, announced today that it has entered into an agreement to acquire 1-800 CONTACTS, Inc., the largest direct-to-consumer retailer of contact lenses in the U.S. whose model is built on providing a superior customer experience and a wide selection of products at affordable prices. Consumers are able to order contacts and glasses in a simple, fast and hassle-free manner using the technology – web, phone or mobile—that is most convenient for them.
Financial terms of the transaction were not disclosed. The acquisition is expected to close in the third quarter of 2012, and is subject to standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction will be financed from available cash on hand and is expected to be slightly dilutive to earnings per share in 2012 by approximately $0.04 due to transaction and integration costs. WellPoint now expects 2012 net income to be at least $7.80 per share, including $0.19 per share of net investment gains from the first quarter of 2012.
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