Elevance Health (ELV.N) is set to acquire private firm Paragon Healthcare for a sum exceeding $1 billion, according to sources cited by Axios on January 4. Earlier on the same day, the health insurer, Elevance Health, had announced its intention to acquire Paragon Healthcare, but had not disclosed the financial specifics of the deal.
Following the acquisition, Paragon Healthcare, known for providing drug infusion services to patients at home and at its centers, will become a part of CarelonRx, the pharmacy services segment within Elevance’s health services division, Carelon.
The anticipated closure of the acquisition is in the first half of 2024. Elevance stated that the deal is not expected to have a significant impact on the insurer’s adjusted profit for the year 2024.
Despite the announcement, Elevance declined Reuters‘ request for comment regarding the financial details of the deal. The acquisition marks a strategic move in the healthcare industry, reflecting ongoing trends of consolidation and expansion within the healthinsurance industry.