WellPoint to Acquire Amerigroup for $4.9 Billion WellPoint, one of the country's largest health insurers, has agreed to buy Amerigroup in a bid to bolster its Medicaid business as the industry undergoes an overhaul. The company said the transaction, which is expected to close early next year, is valued at about $4.9 billion. Under the deal, WellPoint will pay $92 a share in cash for all outstanding shares of Amerigroup, roughly a 43 percent premium over the previous closing price of $64.34. The deal will give the combined company's Medicaid business a presence in 19 states, according to a news release announcing the acquisition. The move comes as the insurance industry, and Medicaid, face significant changes under the Obama administration's health care reform plan. "We believe that this combination will create an industry leader in the government sector serving Medicaid and Medicare enrollees," Angela F. Braly, the chief executive of WellPoint, said in the statement. "This is an opportunity to capitalize on the strengths of both companies to better serve our members and position our companies for future growth as the health insurance industry changes," she added. The deal was the latest in a string of acquisitions for WellPoint. Last month, the company agreed to buy 1-800 Contacts, the contact lens retailer. And last year, WellPoint bought CareMore, a provider of managed care for the elderly, for about $800 million. In the Amerigroup deal, WellPoint was advised by Credit Suisse and Linklaters. Amerigroup was advised by Goldman Sachs and Barclays and the law firm Skadden, Arps, Slate, Meagher & Flom.