Molina Healthcare : Infographic – “Strategically and Financially Attractive Acquisition"
09/29/2020 | 06:15am EST
STRATEGICALLY AND FINANCIALLY
ATTRACTIVE ACQUISITION
Continues Molina's growth strategy momentum
TRANSACTION DETAILS
HIGHLIGHTS
~$380M
Net purchase price, including required regulatory capital
Expected to close
in the second quarter of 2021
Funded
Using cash on hand
Will add ~284,000
Medicaid members in New York, the country's second largest Medicaid market
Immediately accretive to
Molina adjusted EPS
Highly complementary
strategic fit with core Medicaid and high acuity membership
PRO FORMA NEW YORK STATE PRESENCE1 EXCEEDS $2.3B IN PREMIUM REVENUE
Molina Existing Business
Affinity
Magellan Complete
Care & Affinity
Opportunity for Significant Fixed Cost Leverage
Overlapping footprint and
complementary products with pending Magellan Complete Care acquisition
Significant value creation
opportunities through
improving underperforming business to Molina margins
At less than 30% of
approximately $1.3B in TTM premium revenues, purchase price is extremely attractive
"The addition of Affinity is yet another important marker in activating our growth strategy, and is a perfect product line and geographic fit. We believe Molina's strengths, including its strong balance sheet and demonstrated operating capabilities, will allow us to strengthen the financial base of Affinity and improve the business's cost structure and operating margins."
JOE ZUBRETSKY, CEO MOLINA HEALTHCARE
1Includes Molina, YourCare and pending MCC and Affinity counties. See safe harbor statement and disclaimer regarding forward-looking statements in the accompanying Form 8-K filed with the SEC on September 29, 2020.
Molina Healthcare Inc. published this content on 29 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 September 2020 10:14:05 UTC
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