Centene to buy Magellan Health in $2.2B deal

 

• Magellan Health (NASDAQ:MGLN) +11.1% pre-market after Centene (NYSE:CNC) agrees to acquire the pharmacy benefits manager in a deal valued at $2.2B including debt.
• Centene says it will buy Magellan Health for $95/share in cash, a 14.7% premium to the last closing price, to be funded through debt financing and a $2.38B bridge financing commitment from J.P. Morgan.
• The deal will add 5.5M new members to Centene's government sponsored health plans, 18M third-party customers of specialty health services, 2M pharmacy benefit manager members and 16M medical pharmacy members.
• In a separate announcement, Magellan Health closed the sale of its Complete Care business to Molina Healthcare (NYSE:MOH) for ~$820M, net of certain tax benefits.
• Centene recently reaffirmed FY 2020 total revenue guidance of $109.8B-$111.4B, below the midpoint of $111.26B analyst consensus, and adjusted EPS of $4.90-$5.06 vs. $4.99 consensus.
• https://seekingalpha.com/news/3648245-centene-to-buy-magellan-health-in-2_2b-deal