First the merger was delayed for some vague reason. Now it’s off. LifeMasters and Healthways nix $307M merger basically because of over-reported value of a certain contract — presumably one of the larger ones, and my guess would be a Medicaid one (But that is just a guess). And the difference was important enough that they couldn’t get to a new price
The termination followed a data and reporting error made by the unidentified actuarial firm regarding a LifeMasters’ contract, the companies said. That error “was unknown to LifeMasters at the time the parties entered into the Merger Agreement.” But the correction of the error “materially impacted period revenues” and financial projections that Healthways relied upon when it entered into the agreement.
“We are also disappointed that the merger could not be completed,” said David Strand, LifeMasters’ president and CEO.
Disappointed? I suspect that’s putting it mildly!