PacifiCare Nails Down Merger: PacifiCare Health Systems...

PacifiCare Nails Down Merger: PacifiCare Health Systems Inc. said Thursday that it has reached a definitive agreement to acquire Health Plan of America, forming one of the state’s largest health maintenance organizations. The two companies first announced plans to merge on Sept. 3. The merger is now subject to regulatory approval. Financial terms were not disclosed by the companies, but analysts have valued the deal at between $90 million and $95 million. Health Plan, headquartered in Orange, has 125,000 members, including a strong base in Northern California, where PacifiCare has been seeking a foothold. Cypress-based PacifiCare has more than 700,000 members in five states. The merger will make PacifiCare the state’s second-largest HMO in terms of revenue, after Kaiser Permanente, the company said.