Elevance to pay $2.5 billion for Louisiana health insurer - Bloomberg News

Feb 27 (Reuters) - Insurer Elevance Health Inc (ELV.N) has agreed to pay $2.5 billion for its previously announced purchase of Blue Cross and Blue Shield of Louisiana, Bloomberg News reported on Monday, citing documents.

Additional conditions for the deal, which was announced last month, might raise the value of the transaction by $1 billion, the report said.

A major portion of the deal proceeds will go to a foundation that would be set up in Louisiana after Blue Cross and Blue Shield are converted to a for-profit subsidiary of Elevance.

Blue Cross and Blue Shield of Louisiana will also contribute surplus capital to the foundation when the deal closes, bringing the value of the transaction to about $3.5 billion, Bloomberg News reported.

The proposed funding as per the report is "directionally accurate", but the payment is an estimate that is subject to change before being finalized at the close of the transaction, the company said in its statement.

Blue Cross and Blue Shield of Louisiana did not respond to Reuters' requests for comment.

Elevance first announced the deal in January without disclosing the financial terms, and expects to close the transaction by the end of this year.

Reporting by Leroy Leo and Khushi Mandowara in Bengaluru; Editing by Krishna Chandra Eluri

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