Molina to Acquire Bright HealthCare’s California Medicare Business

 Transaction expands Molina’s Medicare presence in California and is expected to add $1.00 per share to new store embedded earnings1

Molina Healthcare, Inc. (NYSE: MOH) ("Molina" or the "Company") announced today that it has entered into a definitive agreement to acquire 100% of the issued and outstanding capital stock of Brand New Day and Central Health Plan of California (collectively, the "CA Health Plans"), each of which is a wholly owned subsidiary of Bright Health Company of California, Inc ("BHCA"). Relevant transaction terms and features are as follows:

• The purchase price for the transaction is approximately $510 million, net of certain tax benefits, representing 28% of expected 2023 premium revenue of $1.8 billion.

• BHCA currently offers MAPD, D-SNP, and C-SNP products in 23 counties in California, with 60% overlap with Molina’s Medicaid footprint. As of March 31, 2023, BHCA served approximately 125,000 members.

• The transaction represents a strong strategic fit with Molina’s expanded 2024 Medi-Cal contract. It accelerates Molina’s D-SNP growth initiatives and activates the Los Angeles County 2024 D-SNP option the Company had negotiated with the state.

• Today’s announcement is expected to add $1.00 per share to new store embedded earnings, bringing the expected total to $5.50 per share2.

https://finance.yahoo.com/news/molina-healthcare-acquire-bright-healthcare-121500497.html