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News Summary: WellPoint to buy 1-800 Contacts

Associated Press Published: June 4, 2012

THE ACQUISITION: Health insurer WellPoint Inc. said Monday it will buy contact lens retailer 1-800-Contacts Inc. from private equity firm Fenway Partners in a deal that gives WellPoint its first direct-to-consumer business outside selling individual health coverage. It didn't disclose teams of the deal.

ABOUT WELLPOINT: Based in Indianapolis, WellPoint is the second-largest U.S. health insurer, trailing UnitedHealth Group Inc. It runs Blue Cross Blue Shield plans in 14 states and mainly sells health insurance.

ABOUT THE DEAL: WellPoint says it wants to diversify its sources of revenue, and 1-800 Contacts can help it become a more consumer-oriented company.