Health care insurer Centene Corp.
said Monday it has agreed to acquire Magellan Health Inc.
for $95 a share, in a deal with an enterprise value of $2.2 billion. The deal “will broaden and deepen Centene’s whole health capabilities and establish a leading behavioral health platform,” the companies said in a joint statement. Magellan will add 5.5 million new members to Centene’s government sponsored health plans, as well as 18 million third-party customers of specialty health services. The deal will also add 2 million pharmacy benefit manager members and 16 million medical pharmacy members. Magellan will be part of Centene’s Health Care Enterprises division and will continue to independently support its existing customers and pursue growth opportunities. The deal is expected to close in the second half and to be mildly accretive in year one and then boost per-share earnings by a low to mid-single digit percent after that. Magellan share soared 11% premarket on the news, while Centene was up 0.1%.