Triple-S acquired in merger with parent firm of Blue Cross & Blue Shield
By The Star Staff
Local health care services company Triple-S Management Corp. announced Tuesday its agreement to be acquired by GuideWell Mutual Holding Corp., a health solutions company based in Jacksonville, Fla. and parent of Blue Cross and Blue Shield of Florida Inc.
Under the terms of the deal, GuideWell will acquire all Triple-S Management stock for $36 per share in cash. The transaction’s equity value is some $900 million, according to a NASDAQ statement.
The transaction will be completed through a merger of a newly created subsidiary of GuideWell with and into Triple-S Management, with Triple-S Management as the surviving corporation.
In pre-market activity on the New York Stock Exchange (NYSE) on Tuesday, Triple-S shares were gaining around 44.3 percent to trade at $34.90.
The per share price represents a premium of approximately 49% to Triple-S Management’s 90-day volume-weighted average trading price.
The deal is expected to close in the first half of 2022, subject to satisfaction of normal closing conditions, including customary state and federal regulatory review and approval as well as approval by Triple-S Management shareholders.
Upon the deal closure, Triple-S Management will become a subsidiary of GuideWell and will continue to be led by its current management team while operating under the Triple-S Management brand.
The agreement was unanimously approved by both companies’ boards of directors.
Triple-S Management serves more than 1 million consumers in Puerto Rico. GuideWell, a not-for-profit mutual holding company, serves more than 45 million people in 45 states.