In its attempt to expand its presence in the northeast region of the US, insurer UnitedHealth Group Inc has decided to go in for a nearly $570 million acquisition of Health Net Inc's operations in the mentioned region.

Under the deal - which is expected to 'modestly' boost the earnings of both companies - Health Net would be selling its Northeast insurance and HMO units in Connecticut, New York and New Jersey, along with its membership renewal rights for its Life health care business in the Northeast, but would be retaining its Arizona operations.

The deal, covering 578,000 Health Net members, comprises almost $450 million in tangible net equity from Health Net's Northeast insurance and HMO units. The 2009 revenues from the operations would expectedly touch approximately $2.7 billion.

Though the Los Angeles-based Health Net had initially been deliberating on the sale of its Arizona business too, it later decided to maintain the unit; and hereafter, focus its resources on its health plans in the Western United States.

Commenting on the exasperatingly long time taken for the deal to come through, Health Net CEO Jay Gellert said: "This review took a quite a bit of time. I know some of you found that frustrating, while it did take more time than we originally thought, we wanted to make sure we got it right and we believe we have."