Triple-S Management to be sold to GuideWell in all-cash deal worth $900M
GuideWell Mutual Holding Corporation, a health solutions company and parent of Blue Cross and Blue Shield of Florida Inc., and Triple-S Management Corp. a health care services company in Puerto Rico, announced they will combine to transform the health care experience for their members in Florida and Puerto Rico.
Under the terms of the definitive agreement, GuideWell will acquire all the outstanding shares of Triple-S Management common stock for $36 per share in cash, representing a premium of approximately 49% to Triple-S Management’s 90-day volume-weighted average trading price. The transaction equity value is approximately $900 million.
Upon completion of the transaction that is expected to close in the first half of 2022, Triple-S Management will become a subsidiary of GuideWell and will continue to operate under the Triple-S Management brand. The agreement was unanimously approved by both companies’ Boards of Directors, the companies confirmed.
“Uniting our mission-driven, community-focused teams is a great outcome for our companies, as well as for Puerto Rico and Florida, and our shareholders,” said Triple-S Management CEO Roberto García-Rodríguez.
“We have long admired Florida Blue’s locally focused approach to care, and we share their respect for the uniqueness of every community served,” he said.
“By partnering with a strong organization that shares our mission and approach, we will be well positioned to achieve our strategic goals, expand access and improve health care outcomes for all our members. The transaction is also clearly in the best interests of our shareholders, given the strategic fit, the significant premium to our current share price and resulting shareholder liquidity,” he added.
GuideWell is a nonprofit mutual holding company and the parent to a family of companies, including Florida Blue, that are focused on transforming health care. In total, GuideWell companies serve more than 45 million people in 45 states.
Florida Blue is the oldest and largest health insurer in Florida, serving more than 5 million members across all 67 counties in the state. Triple-S Management serves more than 1 million customers in Puerto Rico, with a strong position in Medicare Advantage.
The deal positions GuideWell, Florida Blue and Triple-S Management “to better serve customers and members in a rapidly evolving environment,” officials said in a statement announcing the transaction.
The combined entity will be diversified and well-positioned to compete and invest “to drive improved health outcomes, access and affordability.”
“The transaction expands GuideWell’s core insurance operations and positions Florida Blue and Triple-S Management for significant growth and meaningful value creation for the customers and communities we serve,” said Pat Geraghty, CEO of GuideWell and Florida Blue.
“Florida Blue and Triple-S Management are both recognized for their high-quality, affordable health care and their actions deeply rooted in supporting community well-being,” he said.
“With Puerto Rico’s outlook strengthening, and Florida experiencing fast-paced growth, especially in its Puerto Rican and Hispanic populations, this is a natural next step,” Geraghty added.
As of press time, it remained unclear whether the transaction will enable Puerto Rico’s Triple-S customer base to receive coverage for medical treatment in Florida.
The sale of Triple-S Management is the second such deal announced this year involving a local insurance provider. In February, Anthem Inc. announced it had entered into an agreement with InnovaCare Health, L.P., to acquire its Puerto Rico-based subsidiaries, including MMM Holdings, LLC and its Medicare Advantage plan MMM Healthcare, LLC as well as affiliated companies and Medicaid plan.
As News is my Business reported, the deal — whose financial terms were undisclosed — was completed last month.