The acquisition will enable Centene to establish one of the nation’s largest behavioral health platforms across 41 million unique members.
The Transaction:
Centene Corp, St. Louis, Missouri-based healthcare insurer, announced today to acquire Magellan Health Inc, for an enterprise value of USD 2.2bn.
Centene has agreed to pay USD 95 per share in cash to Magellan’s shareholders, representing c. 15% premium to Magellan’s last closing price.
The combination brings together the companies’ complementary capabilities in behavioral health, specialty healthcare, and pharmacy management.
The transaction, expected to complete in 2H 2021, is unanimously approved by the Boards of Directors of both companies. Affiliates of Starboard Value LP, which owns approximately 9.4% of Magellan, have agreed to vote in favor of the transaction.
The CEO of Magellan, Ken Fasola, and other management executives have agreed to join Centene to provide continuity to Magellan Health’s strategy and leadership.
NYSE-listed, Centene has a current market value of USD 34.8bn, while Nasdaq-listed Magellan has a current market value of USD 2.1bn.
Centene has been active in acquiring healthcare-related businesses. Last month, it had completed the acquisition of PANTHERx Rare Pharmacy, a pharmacy chain in the U.S. specializing in orphan drugs and rare diseases, and Apixio, a healthcare analytics company offering Artificial Intelligence (AI) technology solutions, according to AnalyzeMarkets Global Deals Data.
In January last year, Centene had completed the acquisition of WellCare Health Plans Inc. for USD 17bn in a take-private transaction.
Advisors:
Allen & Company LLC, J.P. Morgan Securities LLC, and Barclays are serving as financial advisors to Centene, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as its legal counsel.
Goldman Sachs & Co. LLC and Guggenheim Securities, LLC are serving as financial advisors to Magellan Health, and Weil, Gotshal & Manges LLP is serving as its legal counsel.
Source: Analyze Markets ltd
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