Insurer Elevance Health Inc has agreed to pay $2.5 billion for its previously announced purchase of Blue Cross and Blue Shield of Louisiana, Bloomberg News reported on Monday citing documents.
Additional conditions for the deal, which was announced last month, might raise the value of the transaction by $1 billion, the report said.
A major portion of the money will go to a foundation which would be set up in Louisiana after Blue Cross and Blue Shield are converted to a for-profit subsidiary of Elevance.
Blue Cross and Blue Shield of Louisiana will also contribute surplus capital to the foundation when the deal closes, bringing the value of the transaction to about $3.5 billion, Bloomberg News reported.
Elevance first announced the deal in January without disclosing the financial terms, and expects to close the transaction by the end of this year.
Elevance and Blue Cross and Blue Shield of Louisiana did not immediately respond to Reuters' requests for comment.
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