Centene will acquire behavioral health provider Magellan Health through a merger agreement, the organizations said Jan. 4.
Five things to know:
1. Centene will buy Magellan for $95 per share in a cash deal that values the Phoenix-based behavioral health provider at $2.2 billion.
2. The deal is expected to be completed in the second half of 2021. It will make Centene one of the nation's largest behavioral health platforms, with 41 million members, the insurer said.
3. Several Centene lines will grow under the deal. Its government plan business will expand by 5.5 million members; it will gain 18 million third-party customers who use Magellan's specialty health services; and Centene will grow its pharmacy benefit manager and medical pharmacy members by 2 million and 16 million members, respectively.
4. Magellan CEO Ken Fasola and other Magellan leaders will join Centene, though their specific roles weren't identified in the news release.
5. In 2019, when speculations about Magellan's sale began surfacing, UnitedHealth Group and private equity firm Carlyle Group were named as front-runners in a possible transaction.