|Acquisition expands Anthem's focus on behavioral health solutions as part of whole person care
INDIANAPOLIS, June 6, 2019 -- Anthem, Inc. (NYSE:ANTM) today announced that the company has entered into a definitive agreement to acquire Beacon Health Options (Beacon), the largest independently held behavioral health organization in the country. Beacon currently serves more than 36 million individuals across all 50 states, including nearly 3 million individuals under comprehensive risk-based behavioral programs. The acquisition aligns with Anthem's strategy to diversify into health services and deliver market-leading integrated solutions and care delivery models that personalize care for people with complex and chronic conditions.
"As Anthem works to improve lives, simplify healthcare and serve as an innovative and valuable partner, we're focused on providing solutions that address the needs of the whole person," said Gail K. Boudreaux, President and CEO, Anthem. "With an extensive track record in behavioral health, Beacon fits well with our strategy to better manage the needs of populations with chronic and complex conditions, and deliver integrated whole health solutions. Together with Beacon, we will enhance our capabilities to serve state partners, health plans and employer groups as they seek to address consumer behavioral health needs."
The acquisition of Beacon will offer Anthem the opportunity to combine its existing behavioral health business with Beacon's successful model and support services to fully scale integrated behavioral and physical health capabilities to customers and consumers nationwide. Collectively, both businesses will be able to enhance whole person care and improve overall health outcomes with a stronger portfolio of specialized products, more clinical expertise, improved analytics and health data, and broader provider networks and relationships. The combination will also create one of the most comprehensive behavioral health networks capable of offering more accessible and affordable care for consumers throughout the country.
Upon completion, Beacon, combined with Anthem's behavioral health business, will operate as an integrated team within Anthem's Diversified Business Group. Russell C. Petrella, Ph.D., Beacon Health Options President and CEO, as well as other key members of Beacon's senior team, will join Anthem's Diversified Business Group to lead the efforts to offer innovative behavioral health solutions and further expand this business.
"We are excited to partner with Anthem to serve the behavioral health needs of more than 60 million Americans," said Petrella. "Our member-focused, integrated clinical care model helps individuals and their families cope with their physical and behavioral health challenges. Together, we will expand access and enhance the quality of care for our mutual members. I am proud of the talented and committed team at Beacon, and we look forward to our future with Anthem."
Anthem will acquire Beacon from Bain Capital Private Equity and Diamond Castle Holdings, who invested to grow and improve the company and help achieve its mission. Financial terms of the transaction were not disclosed. The acquisition is expected to close in the fourth quarter of 2019 and is subject to standard closing conditions, customary state regulatory approvals and the expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction is expected to be slightly accretive to adjusted earnings in 2020.
About Anthem, Inc.
Anthem is a leading health benefits company dedicated to improving lives and communities, and making healthcare simpler. Through its affiliated companies, Anthem serves more than 78 million people, including over 40 million within its family of health plans. We aim to be the most innovative, valuable and inclusive partner. For more information, please visit www.antheminc.com or follow @AnthemInc on Twitter.
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