What You Should Know:
Molina Healthcare (NYSE: MOH) has revised its agreement to acquire Bright HealthCare’s California Medicare business, securing a discount of $85M on the initial purchase price. This revised deal, announced on December 13, 2023, reflects a continued commitment to the acquisition while offering Molina potential cost savings and increased value.
The acquisition expands Molina’s reach in the lucrative California Medicare market, adding roughly 250,000 members to their portfolio. It also complements Molina’s existing Medicare Advantage offerings, allowing for potential synergies and cost efficiencies.
Financial Details
- The purchase price, net of tax benefits, is now set at approximately $425M, down from the previously announced $510M.
- This represents 23% of the expected 2023 premium revenue of $1.8 billion for the acquired business.
- As previously stated, the acquisition is expected to add $1.00 per share to new store-embedded earnings and remains on track to close on or about January 1, 2024.
