Molina To Acquire Magellan Complete Care For $820 Million

On April 30, 2020, Molina Healthcare announced a definitive agreement to acquire the Magellan Complete Care (MCC) business line from Magellan Health, Inc. for $820 million. Molina intends to fund the purchase with cash on hand. The acquisition will enable Molina to enter three new states—Arizona, Massachusetts, and Virginia—and expand into New York City. The transaction is expected to close in the first quarter of 2021, subject to federal and state regulatory approvals.

MCC, with revenue of over $2.7 billion in 2019, manages full-service Medicaid and Medicare health plans. As of December 31, 2019, MCC served . . .