MetLife to Buy Versant Health

MetLife has reached an settlement to obtain the managed eyesight-treatment business Versant Health from a team of investors led by Centerbridge Associates and like FFL Associates for $1.675 billion in an all-money transaction.

Versant owns the market manufacturers Davis Vision and Excellent Vision, which has about 35 million members. MetLife mentioned subsequent the deal it would develop into the third-premier eyesight insurance company by membership in the U.S. The business has provided team eyesight considering the fact that 2012 and it has a fifteen% market place share in U.S. team advantages. It mentioned soon after the acquisition it will have about 38 million eyesight-treatment members.

It is financing the deal with money on hand.

“We are confident this acquisition will make our market place-foremost team advantages enterprise even extra eye-catching,” Ramy Tadros, president of U.S. enterprise for MetLife, mentioned. “The addition of the sturdy Davis Vision and Excellent Vision manufacturers will straight away build MetLife as a chief in managed eyesight treatment.”

MetLife mentioned it expected the deal to be accretive to earnings per share and free of charge money movement and would have an inner charge of return in the significant teens.

“This transaction furthers our goal of deploying cash to the maximum-price possibilities,” MetLife chief govt officer Michel Khalaf mentioned in a statement. “We hope this blend to accelerate earnings development when delivering larger price for our shoppers and shareholders.”

MetLife authorized a $2 billion share buyback in July 19.

MetLife’s share rate is down extra than 26% calendar year-to-day, vs . an 18% fall calendar year-to-day for the SPDR S&P Insurance policy ETF.

The deal is expected to shut in the fourth quarter of this calendar year.

MetLife shares were being up practically 2% in morning buying and selling.

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