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