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Molina Healthcare to buy Magellan Complete Care for about $820 million

Credit: REUTERS/THOMAS WHITE

Molina Healthcare Inc would buy Magellan Complete Care, Magellan Health Inc's unit that provides managed-care health plans, for about $820 million, the healthcare insurer said on Thursday.

April 30 (Reuters) - Molina Healthcare Inc MOH.N would buy Magellan Complete Care, Magellan Health Inc's MGLN.N unit that provides managed-care health plans, for about $820 million, the healthcare insurer said on Thursday.

Magellan shares were up 15.2%, while Molina was down 0.4% in aftermarket trading.

With the addition of Magellan Complete Care, Molina will be able to serve more than 3.6 million members in government-sponsored healthcare programs across 18 states and will have 2020 pro-forma projected revenue of over $20 billion.

The transaction adds Arizona, Massachusetts and Virginia to Molina's Medicaid portfolio and is expected to close in the first quarter of 2021.

The all-cash acquisition is expected to add about $3 billion in revenue by 2021, Molina said.

Separately, Molina's first-quarter revenue rose 10% to $4.5 billion and the company reaffirmed its full-year 2020 earnings per share forecast of $11.20 to $11.70.

(Reporting By Mrinalika Roy in Bengaluru; Editing by Vinay Dwivedi)

((mrinalika.roy@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 806749 8325;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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