April 30, 2020 / 10:42 PM / a month ago

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

April 30 (Reuters) - 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 reut.rs/2KNshrl 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

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