INDIANAPOLIS, May 4 /PRNewswire-FirstCall/ -- WellPoint, Inc. today announced that it has entered into a definitive agreement to acquire Lumenos, a pioneer and market leader in consumer-driven health programs. Since its founding in 1999, Lumenos has built well-recognized consumer-driven products, services and capabilities to drive consumerism in health care today. The strength of Lumenos' sales and service experience with consumer-driven health plans, consumer tools and existing base of clients and consumers, coupled with WellPoint's extensive networks, medical management expertise and customer base will create a clear distinction in the marketplace.
"We are committed to continually finding ways for consumers to take a more active role in their health and health care and this acquisition helps us deliver on our commitment," said Larry C. Glasscock, president and chief executive officer of WellPoint, Inc. "This acquisition also enables WellPoint to offer our customers more innovative solutions to drive health care consumerism through new products, on-line tools and information."
"Almost six years ago, we set out to fundamentally change this industry. We accomplished this by tackling health care costs at their most basic level -- by empowering consumers with financial accounts, information, support tools, and incentives that help improve and maintain health and wellness," said Chip Tooke, chief executive officer of Lumenos. "Now is the time to expand the vision to millions of health care users and our partnership with WellPoint will provide the means to that enrollment expansion."
Lumenos currently offers innovative Health Savings Account plans (HSA) and Health Reimbursement Account plans (HRA) which are two of the most popular types of consumer-driven health plans available today. These plans engage consumers in the health care system by giving them more control of their health care dollars. Their goal is to improve quality and cost control by giving consumers incentives to spend their health care dollars wisely and do more to manage their health so they stay healthier.
"The leadership team for Lumenos has clearly developed an excellent set of capabilities that will become the platform for a broader, deeper consumer offering for WellPoint customers," added Glasscock.
Under the terms of the agreement, the stockholders of Lumenos will receive approximately $185 million in cash. The acquisition is expected to close in the second quarter of 2005, subject to standard closing conditions and customary approvals required under the Hart-Scott-Rodino Antitrust Improvements Act. Lumenos currently serves approximately 214,000 members and is expected to have operating revenue of approximately $45 million in 2005. The transaction will not have an impact on WellPoint's current earnings per share guidance for 2005.
About WellPoint, Inc.
WellPoint, Inc. is the largest publicly traded commercial health benefits company in terms of membership in the United States. WellPoint, Inc. is an independent licensee of the Blue Cross and Blue Shield Association and serves its members as the Blue Cross licensee for California; the Blue Cross and Blue Shield licensee for Colorado, Connecticut, Georgia, Indiana, Kentucky, Maine, Missouri (excluding 30 counties in the Kansas City area), Nevada, New Hampshire, Ohio, Virginia (excluding the Northern Virginia suburbs of Washington, D.C.), Wisconsin; and through HealthLink and UniCare. Additional information about WellPoint is available at http://www.wellpoint.com/ .
Lumenos(R) is a pioneer in the Consumer-Driven Health Care industry. The Company's vision is to foster health care that actually cares about health. Lumenos' award winning approach empowers consumers with health accounts (including Health Reimbursement Accounts and Health Savings Accounts), information, services and incentives to become better informed about their health and engage in health-promoting behaviors. The Company's goal is to improve consumers' health outcomes, and by doing so, to achieve long-term consumers' health outcomes, and by doing so, to achieve long-term cost efficiency for employers. Lumenos plans are available in all 50 states and are offered by many Fortune 500 companies. For more information on Lumenos, please visit http://www.lumenos.com/ .
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This press release contains certain forward-looking information about WellPoint, Inc. that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of WellPoint, Inc., that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include: those discussed and identified in public filings with the U.S. Securities and Exchange Commission ("SEC") made by WellPoint, Inc. (formerly named Anthem, Inc.) ("WellPoint") and WellPoint Health Networks Inc. ("WellPoint Health"); trends in health care costs and utilization rates; our ability to secure sufficient premium rate increases; competitor pricing below market trends of increasing costs; increased government regulation of health benefits and managed care; significant acquisitions or divestitures by major competitors; introduction and utilization of new prescription drugs and technology; a downgrade in our financial strength ratings; litigation targeted at health benefits companies; our ability to contract with providers consistent with past practice; our ability to achieve expected synergies and operating efficiencies in the WellPoint Health merger within the expected time-frames or at all and to successfully integrate our operations; such integration may be more difficult, time-consuming or costly than expected; revenues following the transaction may be lower than expected; operating costs, customer loss and business disruption, including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers, may be greater than expected following the transaction; our ability to meet expectations regarding the timing, completion and accounting and tax treatments of the transaction and the value of the transaction consideration; future bio-terrorist activity or other potential public health epidemics; and general economic downturns. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. WellPoint does not undertake any obligation to republish revised forward- looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures in WellPoint's various SEC reports, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2004.