* Deal adds Medicare members in Southern California
* Humana expects to close deal in late 2011
Sept 23 Health insurer Humana Inc (HUM.N)
agreed to acquire privately held MD Care for an undisclosed
amount on Friday to expand its Medicare plans for the elderly
Humana, one of the largest Medicare plan providers, said it
expects the deal to close in late 2011 and the acquisition is
not expected to materially impact its 2011 earnings outlook.
MD Care, whose Medicare Advantage plan has about 15,000
members in Southern California, recorded revenue of $155
million in 2010, Humana said.
"We view the acquisition favorably as it provides Humana
with another opportunity to expand its Medicare Advantage
footprint, which should help it continue to leverage its
infrastructure," Oppenheimer & Co analyst Michael Wiederhorn
wrote in a note.
Last month, Humana said it would acquire California-based
Arcadian Management, which also specializes in Medicare Advantage
plans, for an undisclosed sum. [ID:nL4E7JP3XK]
Humana shares were down 0.28 percent at $76.06 on Friday on
the New York Stock Exchange.
(Reporting by Anand Basu in New York; Editing by Phil Berlowitz)