COMPDENT AGREES TO ACQUIRE ILLINOIS-BASED DENTAL COMPANY.ATLANTA--(BUSINESS WIRE)--Feb. 29, 1996--CompDent Corp. (Nasdaq/NM:CPDN CPDN Climate Prediction Dot Net CPDN Certified Peritoneal Dialysis Nurse ), a leader in the managed dental care industry, today announced that it has signed a definitive agreement to purchase Dental Care Plus Management Corp., an Illinois-based third-party administrator and managed dental care provider which services more than 500,000 members, including its affiliated company I.H.C.S., Inc. Under the terms of the agreement, CompDent will pay for Dental Care Plus Management Corp. $27 million in cash and assume $11 million in accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. . When completed, the combined managed dental care company will have approximately 2.3 million plan members in 23 states. The transaction is subject to approval by the Illinois Department of Insurance and is expected to be completed in the second quarter of 1996. "Illinois currently has the sixth largest concentration of dental managed care enrollment in the nation; and, with this acquisition, we have significantly strengthened and solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our Midwest market presence," said David R. Klock, president and chief executive officer of CompDent. "Dental Care Plus is one of the largest dental plans in Illinois and offers a state-wide provider network. The acquisition of Dental Care Plus and the recently announced Texas Dental Plans have given us a unique opportunity to continue our momentum in managed dental care." Dental Care Plus, an established leader in the state of Illinois, includes among its current clients the State of Illinois, the Chicago Board of Education, and was recently awarded the Chicago Transit Authority
It has built a number of public housing projects over the years. . Dental Care Plus provides its customers with a broad array of managed dental care and Third Party Administration services. Revenues for 1995 were approximately $17.1 million, for the combined companies. Richard F. Sawicz, president and chief executive officer of Dental Care Plus, said, "I'm extremely excited about the opportunities that are before us and look forward to joining a strong team of professionals. This is an exciting time for managed dental care, and the combination of these two well-positioned companies creates tremendous potential in the industry. CompDent has a dominant market position in Florida, Georgia, Kentucky, Ohio and Texas and, with Dental Care Plus, Illinois. "We recently implemented a major expansion plan for 1996 to significantly increase our sales force through an independent agent network. This will complement CompDent's existing network of more than 9,000 independent agents." CompDent Corp., headquartered in Atlanta, offers managed dental care plans as an alternative to traditional indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. dental insurance Dental insurance is insurance designed to pay the costs associated with dental care. Dental insurance pays a portion of the bills from dentists, hospitals, and other providers of dental services. . The Company's managed dental care plans are sold through a network of independent agents and a direct sales force. CONTACT: CompDent Corporation, Atlanta Sharon S Sharon, city, United States Sharon (shâr`ən), city (1990 pop. 17,493), Mercer co., NW Pa., on the Shenango River, near the Ohio line; settled c.1800, inc. as a city 1920. . Graham, 770/998-8936 |
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