Humana Inc. and Metropolitan Health Networks, Inc., have announced that they have entered into a definitive agreement pursuant to which Humana will acquire Metropolitan in a transaction valued at approximately $850 million plus transaction costs.

Headquartered in Boca Raton, Florida, Metropolitan is a Medical Services Organization that provides and coordinates medical care for approximately 87,500 Medicare Advantage, Medicaid, and other beneficiaries, primarily in Florida, utilizing a primary care-centric business model. Humana, headquartered in Louisville, Kentucky, is a health care company that offers a wide range of insurance products and health and wellness services.

Under the terms of the agreement, which has been approved by both companies' boards of directors, Metropolitan stockholders will receive $11.25 per share in cash from Humana for each Metropolitan share. Humana will also repay all of Metropolitan's outstanding debt.