Maryland-based Coventry Health Care Inc. said Wednesday it has agreed to acquire South Jordan-based Altius Health Plans Inc.
Privately owned Altius is a commercial-only health plan with total membership of approximately 160,000 and annual revenues of approximately $235 million.
Coventry will purchase the stock of Altius for up to $41 million in cash. Included in the purchase price is approximately $6.5 million of current statutory net worth.
The transaction is expected to close late in the third quarter. It is subject to approval by the Utah insurance commissioner.
Altius said it will continue offering health-care benefits in Utah under its current name. Local management will continue to operate the plan and maintain its offices in South Jordan.
"The ownership change will be transparent to our customers and provider partners," said Altius' president, Michael D. Bahr. "We will continue to manage business and customers relationships here in the community."
Altius said the move will result in it meeting financial reserves required by the Utah Insurance Department and will eliminate outstanding debt.
Altius has been privately held since 1998 when a group of Utah investors led by Val Christensen and Kurt Larsen bought the stock of PacifiCare of Utah Inc.
Coventry operates health plans, insurance companies and provider networks.