Anthem to buy Trigon Healthcare for 1.27 times revenue

Weekly Corporate Growth Report, May 6, 2002

The Deal: Anthem Inc. has entered into a definitive merger agreement to acquire Trigon Healthcare Inc. in a cash and stock transaction. Shareholders of Trigon will receive $30 in cash and 1.062 shares of Anthem common stock for each Trigon share. Based on Anthem's recent trading price, the total compensation per share is approximately $105.08, bringing the total deal value to about $3.78 billion. The deal remains subject to shareholder and regulatory approvals, and is expected to close in three to six months. After the closing, Anthem's board will include three members of the Trigon board.

The Deal: Trigon Healthcare is the largest managed health care company in Virginia. The company serves more than 2 million members through provider networks. Trigon also offers life and disability insurance. Federal and state government employees are the company's largest markets.

Anthem provides health insurance and services, primarily under the Blue Cross and Blue Shield names, to almost 8 million customers. Anthem Inc. operates through subsidiary companies, including Anthem Insurance and AdminaStar Federal. Anthem is the fifth largest publicly traded health benefits company in the United States.

The acquisition of Trigon will extend Anthem's presence into an important new southeastern region, according to Larry Glasscock, president and CEO of Anthem.