DentiCare, HMO Agree to Merge in $22.8-Million Deal
LAGUNA NIGUEL — DentiCare of California Inc., a dental health maintenance organization based here, has finalized a $22.8-million merger with Foundation Health Corp. of Sacramento, the companies said Monday.
DentiCare President Carl E. Bozzo said the merged entity plans to expand by acquiring other dental HMOs and a vision plan company this year. DentiCare now has 375,000 members, and hopes to have 1 million members by 1994, Bozzo said.
Foundation Health Corp. is a medical HMO with 1.2 million members. Under the terms of the merger, shareholders in DentiCare’s parent company, National Health Care Systems Inc., received $3.30 worth of Foundation Health common stock for each share of National Health stock. They now hold about 4.9% of Foundation Health stock.
The name National Health Care will not be used, but DentiCare will continue to operate under its own name as a wholly owned subsidiary of Foundation Health, Bozzo said.
Bozzo said the company is conducting acquisition talks with a small California company that offers prepaid vision plans, though he declined to name the firm. DentiCare is also talking to three other California dental care companies about possible acquisitions, he said.
DentiCare now has 91 employees in Laguna Niguel but hopes to increase that to 125 or 130 employees during the next 18 months, Bozzo said.
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