UnitedHealth Group Inc., the biggest U.S. insurer for medical care, agreed to buy closely held Definity Health Corp. for $300 million in cash to add about 500,000 members next year in plans that usually carry higher deductibles.
The purchase of Definity Health, based in Minneapolis, probably will close in the fourth quarter, Minnetonka, Minn.-based UnitedHealth said in a statement. Definity Health expects $100 million in 2005 revenue and is profitable, UnitedHealth said.
Chief Executive William McGuire is adding members at UnitedHealth through acquisitions while U.S. job growth is too slow to expand health-plan rolls. He bought Oxford Health Plans Inc. for $4.6 billion in July, gaining 1.5 million customers in the New York metropolitan area. In February, McGuire bought Mid Atlantic Medical Services Inc. to expand around Washington, D.C.
Definity provides health benefits to about 100 employers in self-funded benefit plans.
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