LBO Firms Back Universal American Financial

Universal American Financial Corp. (Nasdaq: UHCO) has agreed to acquire pharmacy benefits manager MemberHealth Inc. for approximately $630 million (55% cash, 45% UAF stock). The deal is being backed by a $350 million PIPE investment in UAF by Lee Equity Partners, Perry Capital, Union Square Partners Management (f.k.a. Capital Z) and Welsh, Carson, Anderson & Stowe. The PIPE is valued at $20 per share, with $100 million funded within the next two weeks and the remainder to be funded when the MemberHealth transaction closes in Q3.