Yesterday, Centene Corporation and Magellan Health, Inc. announced that they have entered into a merger agreement. According to Centene’s press release, the publicly traded companies’ boards unanimously approved the decision set to “broaden and deepen Centene’s whole health capabilities and establish a leading behavioral health platform.”
Centene explained that it is a Fortune 50 company and a top multi-national healthcare enterprise. It reportedly “offers fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals” including Medicaid and Medicare members, individuals and families served by the Health Insurance Marketplace, the TRICARE program, and individuals in correctional facilities.
Magellan Health is a Fortune 500 company, and “leader in managing the fastest growing, most complex areas of health, including special populations, complete pharmacy benefits and other specialty areas of healthcare.” Its customers include health plans and other managed care organizations, employers, unions, military and governmental agencies, and third-party administrators.
Centene’s acquisition of Magellan Health for $95 per share in cash will unite the companies “complementary capabilities” in the fields of behavioral health and specialty healthcare and pharmacy management, according to Centene’s press release. In addition, Magellan Health will contribute 5.5 million members to Centene’s government-sponsored plan base. Moreover, the merger will add 2 million pharmacy benefit manager members and 16 million medical pharmacy members, augmenting Centene’s leadership as a pharmacy platform, the press release said.
Magellan Health’s CEO and management team are set to remain in leadership roles. The parties expect the transaction to finalize in the second half of 2021.