Molina Healthcare to acquire Affinity Health Plan for ~$380M

Molina Healthcare (NYSE:MOH) to acquire Affinity Health Plan for ~$380M, to be funded with cash on hand.

Affinity is a Medicaid managed care organization serving members in the New York City, Westchester, Orange, Nassau, Suffolk, and Rockland counties in New York.

As of August 31, 2020, Affinity served ~284K Medicaid members with premium revenue for the trailing twelve months ended July 31, 2020 of ~$1.3B.

Joe Zubretsky, president and chief executive officer of Molina, said, “The acquisition of Affinity provides us with a stable base of membership and revenue and will deepen Molina’s service offerings in New York, allowing us to meet the needs of hundreds of thousands of additional Medicaid members. The transaction provides added stability to Affinity’s Medicaid members and its state partner during this critical time.”

The transaction is expected to be immediately accretive to adjusted earnings per share and should close in 2Q21.

https://seekingalpha.com/news/3617875-molina-healthcare-to-acquire-affinity-health-plan-for-380m