California residents and others who use Medicaid may be pleased to hear that WellCare and Centene shareholders have agreed to a merger. The deal would see Centene purchase WellCare for $15 billion. According to Centene’s CEO, the combined company will be better able to serve the needs of those who rely on government health benefits. He also noted that the combined entity would make it easier for patients to see improved health outcomes.

Finally, he mentioned that the new entity would do a better job of providing higher quality at a lower cost to states. It was reported that 83% of WellCare shareholders participated in the vote, and of those who voted, 99% agreed to the proposed deal. It was also reported that more than 99% of Centene shareholders who voted on the deal were in favor of it. While receiving shareholder approval is a big step in the acquisition process, it is not the final one.

The deal will need approval from regulators in 26 states as well as from the Department of Justice (DOJ). Prior to the shareholder vote, there was some doubt that the deal would gain approval. This is because hedge funds wanted Centene to look for a better deal. However, the companies now expect the deal to be completed in the first half of 2020.

Businesses that are looking to scale faster or gain access to intellectual property may have several options to accomplish their goals. Options may include buying a company and the assets that it currently owns. A mergers & acquisitions attorney might be able to help structure the purchase in a way that benefits shareholders and meets applicable regulatory requirements. In some cases, this may mean forming a new entity or creating a holding company to house both businesses.