(By Balaseshan) Amerigroup Corp. (NYSE: AGP), a multi-state managed healthcare company, said it has agreed to sell its Virginia business, Amerigroup Virginia Inc., to a not-for-profit healthcare organization Inova.
The sale, which is conditioned on the closing of the previously announced Amerigroup and WellPoint Inc. (NYSE: WLP) transaction, will divest all of Amerigroup's managed care operations in the Commonwealth of Virginia.
As previously announced, Amerigroup and WellPoint each received a request for additional information from the United States Department of Justice (DOJ) in connection with the DOJ's review of WellPoint's pending acquisition of Amerigroup.
The second request focuses on Amerigroup's operations in the Commonwealth of Virginia, and both Amerigroup and WellPoint have worked and continue to work cooperatively with the DOJ staff and representatives of the Commonwealth of Virginia.
The closing of the Amerigroup Virginia Inc. transaction is subject to the receipt of customary regulatory approvals and standard closing conditions.
The sale of Amerigroup Virginia Inc. will not require any change of terms or amendment to the WellPoint merger agreement and the sale is expected to close concurrently with the WellPoint acquisition of Amerigroup, currently expected to occur in the fourth quarter of 2012.
The closing of the Amerigroup and WellPoint transaction remains subject to the receipt of certain regulatory approvals and standard closing conditions, including the approval of Amerigroup's stockholders.
AGP is trading up 0.16 percent at $91.40 on Friday. The stock has been trading between $37.57 and $91.50 for the past 52 weeks.