Clear One Health Signs Merger Agreement With PacificSource Health

Clear One Health Plans (Clear One) and PacificSource Health Plans (PacificSource) have signed an agreement under which PacificSource is expected to acquire Clear One. Under the terms of the merger agreement, Clear One’s shareholders will receive $26.00 per share in cash, upon a successful completion of the transaction.

The price represents a premium of 167% to the closing price on December 29, 2009, of $9.75. The transaction has a total equity value of approximately $46m. Following the close, Clear One will become a wholly-owned subsidiary of PacificSource.

Reportedly, the closing of the transaction is subject to certain terms and conditions customary for transactions of this type, including regulatory approval by the Oregon Insurance Division, the Centers for Medicare & Medicaid Services, and the Oregon Division of Medical Assistance Programs, as well as shareholder approval.

Patricia Gibford, president and CEO of Clear One, said: “The combination of the PacificSource and Clear One organisations brings together two local health plans that share a common passion for both customer service and giving back to the community.

“We have very similar cultures in terms of our focus on how we treat our people as well as our ongoing commitment to enhancing the customer experience. We have tremendous respect for PacificSource and their management, and look forward to becoming part of the PacificSource team.”